Russian factories in the first 11 months of 2020 produced agricultural machinery worth 136.7 billion rubles, which is 30% more than a year earlier, according to the Russian Association of Manufacturers of Specialized Machinery and Equipment (Rosspetsmash).
Supplies of agricultural machinery to the domestic market grew by 46% to 121.3 billion rubles (including VAT), export supplies increased by 14% to 13.8 billion rubles (excluding VAT).
The association noted that they fear that a sharp rise in metal prices, which amounted to 25-35% depending on the type of product, may affect the rate of production of agricultural machinery.
The largest increase in the production of Russian agricultural machinery in quantitative terms, in particular, is observed in the segment of agricultural tractors - by 27% to 4,130 units, grain harvesters - by 24% to 5,200 units, forage harvesters - by 24% to 641 units, harrows - by 19% to 4,750 units, seeders - by 18% to 5170 units, self-propelled mowers - by 17% to 339 units, grain cleaning machines - by 16% to 1440 units, sprayers - by 12% to 1100 units.
Production and shipments of Russian agricultural machinery have been growing annually since 2013. In 2020, the growth of production was ensured by the improvement of the technical characteristics and quality of domestic machines, the expansion of the model range and the range of economic efficiency of domestic agricultural machines, noted in Rosspetsmash.
One of the main programs of state support for the industry in the association called Resolution 1432 on subsidizing the production of agricultural machinery for selling it to farmers on preferential terms. The volume of the program for 2020 amounted to 12 billion rubles. The decree stimulates effective demand in the domestic market.
"The positive dynamics is also due to the fact that the agricultural business, like agricultural machinery manufacturers, did not stop their activities in the context of the spread of coronavirus infection. As a result, farmers reaped a good harvest not only in 2019, but also this year. Prices for their products were kept at a level that made it possible to purchase more agricultural machinery, and domestic factories fully satisfied the growing demand, "the association added.