Prospects of the flax industry of the Smolensk region were discussed on the Forum in Sochi
The session «Renovation of the Russian Flax Complex» was held within the framework of the Russian Investment Forum in Sochi, where participants discussed the prospects of the direction, taking into account the current realities of internal and world experience.
At the beginning of the session, the Deputy Minister of Industry and Trade of the Russian Federation, Viktor Yevtukhov, noted that it was necessary to return attention to flax.
«For last years, we didn’t gave proper attention to this segment and about six months ago decided that this was not entirely correct. We focused more on synthetic and synthetic fibers - this is a popular modern trend. They form the basis of high-tech materials», - said Viktor Yevtukhov
The deputy minister stressed that the share of artificial fiber is 60 percent of consumption, and flax takes only 1 percent but Belgium and France demonstrate that flax can take its place and Russia has every opportunity to do it.
According to Viktor Yevtukhov, the world market of flax products is estimated at $ 2.2 billion a year, Russia's share in this market is only 0.5%, Belarus - 3.5%.
«Today, flax is an exchange commodity, where depending on the quality of flax fiber, appropriate pricing is formed», - Victor Yevtukhov ,the deputy minister, noted. And he said that it was possible to start earning money on the export of flax fiber, as this is a good help for the regions of the Non-Black Earth Region. According to him, it is necessary not to «just own the raw materials», but to receive income from it, increasing the level of its processing, expanding the assortment line and developing non-waste production.
The Deputy Minister also added that with the active participation of the Ministry of Agriculture, the Ministry of Industry and Trade has already started «spinning a flax flywheel.
«Long-term contracts between agricultural producers and textile enterprises of the cluster for the supply of flax fiber have been planned already from this year. Negotiations are being held with the leaders of the flax industry in France regarding the localization of the production of flax harvesting machinery in the Russian Federation. And we are sure that our agricultural machinery manufacturers will support us in this matter», - Yevtukhov concluded.
Participating in the session, the Deputy Governor of the Smolensk region Rostislav Rovbel told about the situation that develops in the flax industry in the region.
"If in Soviet times in the Smolensk region was produced 10% of all flax fiber in the country, then by 2011 flax cultivation in the region fell into decay. Since that time, the region's leadership has begun to help the industry by investing about 300 million rubles in aid, attracted about 1 billion rubles in investments. Now the area of flax cultivation was 5 thousand hectares, by 2020 there will be 20 thousand hectares», - the Deputy Governor, said.
Rostislav Rovbel noted that the region managed to find an investor - agro-industrial holding «Promagro», which plans to launch a flax plant in the Smolensk region. In addition, negotiations were successfully held with the French company Dehondt Technologies Developpement about localization of the production of flax harvesting machinery in the region. Now it is necessary to support these projects at the federal level.
"The domestic flax-growing complex needs support from the state in subsidies for the purchase of equipment, grants, and scientific organizations should help in the production of flax seeds," emphasized the Deputy Governor in his speech.
According to Rostislav Rovbel, the problem with seeds is related to the lack of seed stations: the federal agency of scientific organizations forms breeding centers, but does not involve the regions in discussing this issue. He also outlined the problems of deficit in the flax industry due to its cost.
"We would like the Ministry of Agriculture of the Russian Federation to amend Decree 1432 [on subsidies to producers of agricultural machinery], including enterprises that produce agricultural machinery for flax, to provide more discounts for customers», - the Deputy Governor said.
He also considers it advisable to finalize the Government's decrees concerning the support of industrial clusters, including flax factories.
Concluding the speech, Rostislav Rovbel stressed that the flax industry can develop only when agricultural and industrial production work together as a single complex.
"In order to renovate the flax complex of the country, it is required to synchronize the work of the two federal agencies - the Ministry of Agriculture of Russia and the Ministry of Industry and Trade of Russia. Their goal is to ensure effective development of the country's flax complex, however, the tasks are solved in different ways. At the same time, their joint activities will help eliminate the deterrent factors in the development of the linen industry», - the Deputy Governor noted.