The use of procurement and commodity interventions in the agricultural sector of Belarus as a measure of maintaining the profitability of producers in the context of international economic integration

Abstract

The article is devoted to the identification of problems in the formation of the pricing mechanism in the agricultural sector of Belarus in conditions of deepening international economic integration and substantiation of the main methodological approaches for their overcoming. As the main method of stabilizing prices and maintaining the profitability of rural commodity producers through market regulators proposed to use procurement and commodity interventions. At the same time, the proposed approaches are based on the existing legislative framework, which allows for procurement and commodity interventions in the agricultural sector of Belarus, as well as the experience of the Russian Federation as the main trade and economic partner. Considering the need to attract private capital to the mechanism of interventions, authors, along with the actors involved in the intervention process, an active participation in this scheme of an additional entity - agent (operator), as well as insurance companies. The article substantiates the main functions of all subjects of the intervention process, criteria for selecting products, and also methodical approaches to the definition of minimum and maximum prices. Practical testing of the developed recommendations on the actual data of agricultural organizations of the Ministry of Agriculture and Food of the Republic of Belarus showed, that the application of procurement interventions using the cost method of determining the minimum price will receive an additional 800 million rubles in profit.