Ministry of Agriculture of the Republic of Dagestan

According to the Federal Statistics Service for 11 months of 2005, the prices of food products in the country increased by an average of 8.4% at the level of inflation of 10%.

During the same period in most regions of the Southern Federal District, the rate of increase in food prices exceeded the average Russian level and in only two subjects – the Republic of Dagestan and the Karachay -Cherkess Republic, the increase was the lowest at 7.7% .

In the Krasnodar and Stavropol Territory, food prices rose by 9.4 and 9.7%, respectively, the Rostov region by 11%, the Astrakhan region by 8.6%, in the Republic of Ingushetia by 15.5%, the Kabardino-Balkarian Republic by 11, at 11, 9%, the Republic of North Ossetia by 10.2%.

In almost all regions of the South of Russia, the consumer price index (inflation) exceeds the increase in food prices, which indicates the groundlessness of claims about the determining contribution of food prices for the acceleration of inflation rate.

Moreover, it should be noted that in the increase in prices for food products it is impossible to “blame” manufacturers of agricultural products, in which the sale prices of many types of goods do not even cover the costs they had made.

So, in January-October 2005, the prices of manufacturers of agricultural products of Dagestan rose by only 2.3%(during the same period of 2004 by 11.4%), including for livestock products by 4.3%, and for crop production products Prices fell at all by 0.2%.

And the prices of manufacturers of industrial products of the republic increased by 16.3%, and more than 25%for diesel fuel. This is the notorious dyspropetism of prices for agricultural and industrial products, which does not allow the country’s agriculture to develop normally over the past 15 years.