Mineral fertilizers: in addition to the private control government regulation is required

V. V. Korshunov () and A. F. Leshchinskaya ()

Russian Journal of Industrial Economics, 2017, vol. 10, issue 1

Abstract: The production of mineral fertilizers inRussiain the nineties has decreased two times due to the domestic market collapse and equals now the 25 years ago level. The expected growth of input of fertilizers production capacities in the coming years in the world and inRussiawill outstrip the demand leading thus to a serious competition on international markets. These circumstances clearly reveal the weaknesses of domestic producers. To be successful, manufacturers need to raise the production to a qualitatively new level, providing in the future the competitive advantages of the industry. Despite substantial resources mineral fertilizers enterprises are influenced by negative trends. For phosphate fertilizers production the limiting factor is raw material supply. There exist complicated relations between supplier and consumer of Apatite concentrate. This circumstance affected the operation of phosphate fertilizers enterprises inRussiaproducing less than 75 % of the 1990 year level. The article analyzes the reasons hindering the production growth, rational use of investment in the development of the industry and the possibility of export increase. The main negative reasons are: private ownership of mining raw materials enterprises operating as monopolies. The interests of the owners are at odds with the interests of the mineral fertilizers producers, thus not allowing to increase production. The lack of coherent long-term state programs of basic economy sectors development does not allow to plan modernization of enterprises operating on the domestic market. Irrational use of investment resources prevents modernization of outdated production capacity.Â

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2017:id:575

DOI: 10.17073/2072-1633-2017-1-044-052

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