The government intends to raise financing of the program for agriculture development for 2009-2012. The budget will annually allot RUR 21bn (US$ 0.9bn EUR 0.57bn) for these goals: RUR 8bn for additional grants to purchase mineral fertilizers, RUR 5bn for development of the dairy industry, RUR 4bn for development of the meat industry, RUR 2.3bn to subsidize interest rates on credits, RUR 1.7bn to organize grain interventions. The possibility to raise subsidizing of credits issued to agricultural producers from 66% to 100% of the CB refinancing rate and extend the period of subsidizing for several credits is also under consideration.
A part of grants may be allotted for poultry breeding development in order to substitute import. The Russian Union of Poultry Breeders has already conducted negotiations with US producers to reduce supplies of poultry meat from the USA. In the nearest time, this issue may be considered by the governmental bodies. According to Vice Chairman of the Committee for Agrarian and Food Policy, Sergey Lisovsky, local producers will manage to fill the market with their products promptly. As of today, they produce 2.1mn tons of poultry meat per year worth US$ 5.4bn. About 1.3mn tons worth US$ 2.5bn are imported. Lisovsky estimates the demand for poultry meat at 2.8mn tons per year.
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