Eight major food industry associations, including the Association of Confectionery Enterprises, have appealed to the Deputy Prime Minister asking to halt the planned increase in environmental fees (eco fees). According to industry representatives, higher eco fees would drive up packaging costs and accelerate price growth for food products.
In response, Deputy Prime Minister Dmitry Patrushev has instructed the Ministry of Natural Resources, the Federal Service for Supervision of Natural Resources (Rosprirodnadzor), and the Russian Environmental Operator (REO) to review the industry’s request and provide feedback by June 5.
Currently, eco fees account for 1–5% of food production costs. At the same time, excise taxes and raw material prices are also rising. By 2027, the eco fee for plastic packaging may increase sixfold, and for cardboard packaging, up to twelve times.
While experts note that higher eco fees are a global trend, they warn that such changes could seriously impact segments with low profitability, where margins are just 3–8%. This poses significant challenges for many companies in the Russian food sector.
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In response, Deputy Prime Minister Dmitry Patrushev has instructed the Ministry of Natural Resources, the Federal Service for Supervision of Natural Resources (Rosprirodnadzor), and the Russian Environmental Operator (REO) to review the industry’s request and provide feedback by June 5.
Currently, eco fees account for 1–5% of food production costs. At the same time, excise taxes and raw material prices are also rising. By 2027, the eco fee for plastic packaging may increase sixfold, and for cardboard packaging, up to twelve times.
While experts note that higher eco fees are a global trend, they warn that such changes could seriously impact segments with low profitability, where margins are just 3–8%. This poses significant challenges for many companies in the Russian food sector.
Photo
Source