Production and Processing of Bast Crops in Russia as an Element of Import Substitution

Issue № 8, 2022, article № 8, pages 71-78

Language: Russian

Original language title: ПРОИЗВОДСТВО И ПЕРЕРАБОТКА ЛУБЯНЫХ КУЛЬТУР В РОССИИ КАК ЭЛЕМЕНТ ИМПОРТОЗАМЕЩЕНИЯ

Keywords: FLAX, TECHNICAL HEMP, OILSEED FLAX, ACREAGE, GROSS HARVEST, IMPORT SUBSTITUTION, PRIMARY PROCESSING

Abstract: Flax, technical hemp and oilseed flax are the most important technical crops in Russia, allowing for import substitution of raw materials, textiles and goods previously imported from abroad. The largest increase in acreage and gross harvest over the past 10 years has been observed in technical hemp, in second place is oilseed flax, and flax is the only one of them whose sowing areas have decreased. Over the period from 2020 to 2021, the number of regions sowing flax has almost halved, while the number of subjects of the Russian Federation growing technical hemp has increased by 5 regions. Per-hectare subsidies do not increase the interest of farms in growing flax, because they do not compensate for losses. The annual increase in prices for technological equipment at the beginning of the second quarter of 2022 averaged 25 %. For the period 2019-2022, the selling price of threadbare flax increased by 2 times, and short flax fibers by 1,4 times. The selling price of the same type of hemp, after a short increase, returned to the pre-crisis level. Fluctuations in exchange rates, selling prices, rising inflation and the uncertainty of the economic situation in Russia puts Russian flax mills in difficult conditions. The main problems of these enterprises are the lack of necessary funds and sales markets. In such a situation, serious state support is needed in the form of additional financing, preferential loans, subsidies, and tax benefits. The problem of sales markets should be solved by the state order, which could be formed by the Ministry of Defense, the Ministry of Internal Affairs, the Ministry of Health and Social Development, the Ministry of Transport, which would ensure the sustainable development of domestic production and increase the economic independence and security of the country.

Authors: Basova Natalia Vladimirovna, Novikov Eduard Valerevich, Bezbabchenko Aleksandr Vladislavovich