Russia: State support for flower growers

About 80 percent of the flowers sold in Russia are imported. And only 20% of the flower market flowers are from domestic producers. The national flower production was severely affected by the pandemic. In 2020, at the height of the Covid-19 epidemic, the industry was not included in the list of victims and did not receive assistance from the state. Flower shops and florist shops have closed. Greenhouse complexes suffered heavy losses.

How to support the domestic flower business was discussed on July 21 at a meeting of the Committee on Budget and Financial Markets of the Federation Council of the Russian Federation. Representatives of the Ministry of Finance, the Ministry of Agriculture, the Federal Customs Service, and other responsible departments took part in the discussion of supporting the domestic flower business.

The main thing was the financial provision of measures of state support for domestic flower producers, issues of taxation, customs and tariff policy, the fight against the illegal import of flower products.

To support the industry and maintain its profitability, it was proposed to introduce soft loans for the modernization of existing greenhouses and the construction of new greenhouse complexes for the production of flowers.

Due to the large accounts payable of the industry, it was decided to develop mechanisms for transferring flower enterprises from conventional loans to subsidized loans. Senators proposed to the government to reduce VAT for flower growers, as well as to provide incentives for gas, electricity, fertilizers.

At the meeting, it was noted that has already been done. The Ministry of Finance reported on the developed road map for supporting domestic producers and suppliers of flowers with specific measures for the development of the floriculture industry up to 2025. The Federal l Customs Service announced the elimination of "gray" schemes for the supply of flowers from abroad.

Russia is a country where flowers are very popular. Hopefully, the measures being developed will create equal competitive conditions for foreign and domestic flower suppliers to the vast Russian flower market.

For more information:
Flowers Expo Russia 

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