Market overview
The first private companies trading on the tractor market
have appeared in Minsk in 1992. It were the small private firms buying tractors at a
factory on loaned from commercial banks money.
The tractor factory always had three prices for its producs. The price for state farms, price for a home market in roubles and price for the external market in hard currency. Some times private companies sell machines they get different way from state contracts intended for the farmers. The state always rigidly supervised the similar contracts and this business did not achieve large quantities.
The basic purchases by the private companies occurred at the price of a factory for a home market. This price always was below export price of a tractor factory because of exchange difference: an official rate of National Bank and real rate at the market. There were also other reasons of a difference of the prices. The private companies always found ways for detour of a different sort of interdictions and laws of the state, supporting monopoly, into this market.
The greatest level of trade development into tractors market has achieved during the barter contracts on purchase of components and electric power in 1997-1998 years. After imposing 15 % o tax on barter operations the similar way of trade became unprofitable and private companies now search for other ways for export of tractors. Most interesting that they successfully find it. Think, is it better to buy a tractor from a factory behind 15 thousand dollars, or to purchase it behind 10-11 thousand including the price of delivery to any region of the world.