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Government to resort to interventions on grain market

Last Tuesday the Agriculture Ministry came out with a proposal for selling 500,000 tonnes of grain in the Siberian, Urals and Far Eastern federal districts

MOSCOW, October 4 (Itar-Tass) —— The Russian government has made a decision to resort to interventions on the grain market, Prime Minister Dmitry Medvedev said at a meeting of the Cabinet.

“I have made a decision to resort to grain interventions to control the overall balance of grain on the market. I am instructing the agriculture minister to draft proposals for the scale of interventions, on the regions where they are to be made, and on all other issues of importance.”

Last Tuesday the Agriculture Ministry came out with a proposal for selling 500,000 tonnes of grain in the Siberian, Urals and Far Eastern federal districts. As Deputy Agriculture Minister Ilya Shestakov has said, “only third class wheat will be sold, and only to milling enterprises.”

“We are in the process of determining the starting price. Our proposal is 7,500 rubles a tonne,” Shestakov said. He added that the question had been discussed with grain market experts, who agreed with this approach in principle. They believe that this is a price that will help stabilize the situation on the domestic market, on the one hand, and, and to prevent the export of all grain, on the other, thereby increasing our export potential.

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