Import substitution of agriculture

The agro-industrial complex in Russia at all times was considered quite profitable.

In the current period of competition in this area has grown significantly, so the domestic producer needs to add a lot of force to oppose foreign competitors.

Russian agrarians will have to increase their productivity. In order to solve the problem and move to a new level of production, a new concept was developed - import substitution.

Import substitution is a reduction or complete cessation of import of products abroad, one-time acceptance of this product in the country.

Import substitution in agriculture in Russia

In Russia, there were steps to replace the import of agricultural products. Special programs have been developed for domestic agricultural producers, state support is provided, loans are issued on favorable terms, a product embargo is imposed.

As a result, the productivity of agricultural production has significantly increased. Russia has become more active in purchasing domestic products.

Import substitution events in agriculture

In order to increase the level of agricultural production, in Russia there were defined measures:

  • the state accepts participation in distribution and redistribution of incomes in agrarian sphere;

  • increased financing of agriculture, loans are issued within the framework of state support;

  • agriculture is subject to compulsory state insurance, due to possible natural disasters, due to unfavorable weather conditions;

  • grants are issued for start-up farmers.

The agricultural complex is developing mainly at the expense of credit funds. Therefore, the state plans to attract investors to the agro-industrial complex, which at this time is not enough.

Import substitution program in agriculture

In 2014, a new state program was developed aimed at developing the industry and increasing its competitiveness.

The program is scheduled for 2020, it is planned to reduce imports. The program includes a list of events aimed at the development of production and the success of agricultural production.

A special place is given to the investment component. For the agrarian complex, funds are allocated in the form of subsidies or grants.

According to the new program by 2020, import dependence will be reduced by 20-30%.

More about import substitution in agriculture can be found at the annual exhibition Agroprodmash.