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Russia urges farmers to switch to gas from diesel and gasoline

Russia urges farmers to switch to gas from diesel and gasoline

Moscow, November 11 - Neftegaz.RU. Russia's agrarian ministry is urging farmers to switch to more cost-effective natural gas from diesel and gasoline, Platts reported

"In 2018, farmers acquired more than 5 million mt of motor fuel at a cost of over Rub 270 billion [$4.23 billion]," minister of agriculture Dmitry Patrushev said. "Considering that gas is half of the price, the benefit is obvious to everybody."

Buying tractors and automobile equipment that run on natural gas, as well as refitting the existing equipment, could be done within thepreferential borrowing that is available to farmers.

Russian farmers predominantly use diesel but also use gasoline, with demand surging during the spring sowing works and the autumn harvest. Demand in the 2019 spring agricultural season was estimated at 1.9 million mt for diesel and 300,000 mt for gasoline, the ministry said previously.

Motor fuel represents 11% of the cost of winter wheat and 15% of spring wheat, the statement said. Separately, the ministry said it estimates grain exports in the current agricultural year, starting in July, at 45 million mt, of which36 million mt wheat.