The hottest Russian agricultural machinery industr

2022-10-16
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the Russian agricultural machinery industry feels the chill of "WTO entry" and requires protective measures

the Russian agricultural machinery industry feels the chill of "WTO entry" and requires protective measures

information on China's construction machinery

guide reading: on May 16, Russia's "businessman" reported that, after automobile manufacturers, Russian agricultural machinery production enterprises also require the government to take protective measures to compensate for the losses suffered due to China's entry into the WTO. The reason is that the sales of Russian agricultural machinery fell sharply in the first quarter, and the import share increased significantly

on May 16, Russia's "business man" reported that, following automobile production enterprises, Russian agricultural machinery production enterprises also asked the government to take protective measures to compensate for the losses suffered due to China's entry into the WTO. The reason is that the sales of Russian agricultural machinery fell sharply in the first quarter, and the import share increased significantly

konstankin, President of the new association holding company and President of the Russian Agricultural Machinery Association Babukin requested the acting first deputy prime minister Zubkov to personally intervene in the current situation of agricultural machinery production. On the 13th, babukin wrote to Zubkov, indicating that the industry is currently in an extremely unfavorable situation. According to the evaluation of "Russian agricultural machinery" association, the shipment volume of Russian made combine harvesters decreased by 41.5% to 477 units in the first quarter, and tractors decreased by 6.4% to 3300 units. The main traction and suspension parts of agricultural machinery also showed a declining trend in March. For example, the sales of all kinds of plows made in Russia decreased by 24.7%. According to the association, in the first quarter, the sales of Russian agricultural machinery decreased by 13% to 9.3 billion rubles, and the market share of domestic products decreased by 30%. In the same period, the overall market sales increased by 24% to 24.5 billion rubles, mainly driven by imports. In the first quarter, the sales of imported agricultural machinery increased by 68% to 15.2 billion rubles, accounting for 62% of the total sales. According to the data of the "tractor factory" consortium, the sales of wheeled tractors decreased by 2% to 6300 units, crawler tractors decreased by 31% to 93 units, and feed harvesting and grain combine harvesters decreased by 43% to 776 units

Babkin pointed out that due to the decline in the sales of domestic agricultural machinery, the inventory of finished products had exceeded 10billion rubles by the end of March. For example, at the beginning of May, the factory of "Russian agricultural machinery" (accounting for more than 60% of the market share of Russian made combine harvesters) had 1600 unsold combine harvesters, accounting for 40% of its total annual output

Babkin affirmed that "joining the world trade organization will worsen the current situation". The import tariff of most new agricultural machinery will be reduced from the current 15% to%, and the tariff of second-hand agricultural machinery will also be significantly reduced after China's entry into the WTO

at the beginning of March, Putin authorized the special committee to formulate measures to protect domestic producers. At the end of March, the Ministry of economic affairs proposed seven comprehensive measures, including: re formulating subsidies to agricultural machinery manufacturers according to the WTO anti-interference rules, government procurement, anti-dumping investigations and others

Babkin confirmed in his letter that Putin's Commission was not actually completed, and all proposals were on the surface, which was a common prevarication

Babkin himself put forward 12 measures, including: an additional 7billion rubles for the development of agricultural machinery production, an annual subsidy of 5billion rubles for "Russian agricultural machinery specialized production enterprises", and preferential leasing of domestic machinery in the CIS countries (3billion rubles per year). In addition, Babkin also proposed to prohibit legal persons and natural persons from importing medical high molecular material machines without plasticizer and replaceable PVC, such as agricultural styrene thermoplastic elastomers, to Customs Union countries for more than three years, maintain the import tariff rate of 15% of combine harvesters, and even abolish the principle of equal pricing of natural gas between Russian and foreign consumers

however, other manufacturers do not fully agree with Babkin's views, such as Mikhail, President of "tractor factory" Polokin believes that the decline in Russian agricultural machinery sales is a temporary phenomenon, because the plan to replace agricultural machinery in the first quarter has not yet been implemented, and the situation will change in summer. Some manufacturers also believe that the decline in agricultural machinery sales stems from many consumers waiting for the tariff reduction after China's accession to the WTO, as well as the impact of the overall instability of the world economy

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