From February 1, the Ministry of Agriculture of the Russian Federation is preparing to conduct new interventions in the grain market.
It is planned that this will help solve the problems of millers.
Such plans of the Ministry of Agriculture were reported at the National Commodity Exchange, which most often conducts such auctions. It is expected that the new auction will be held with the participation of exclusively Russian companies:
Grain producers
Producers of livestock products
Millers.
The first will act as sellers, the second and third — buyers. The bidding will be mainly 3 and 4 class wheat harvest 2014-2016, as well as barley harvest 2013-2015.
Almost all the grain of later harvests is now in circulation.
The main problem that they are trying to solve in this way is to provide millers and livestock breeders with cheap grain, which is now very difficult for them to buy at affordable prices due to high world quotations.
How much grain is planned to be placed in the fund?
At the end of January, the grain fund had only 60.5 thousand tons of grain worth 620 million rubles.
Over the past two years, the fund has sold grain in the amount of 1.62 million tons, its total value amounted to about 19.3 billion rubles.
All the grain that is in the fund can be used to carry out interventions and bring down domestic Russian prices. However, most often it is sold directly to businesses that require it to operate.
During the new trades, it is planned to increase the stock of grain in the fund up to 3 million tons.
Moreover, it is very important that this reserve is supposed to be made irreducible. This will give the fund more room to actively intervene when it deems it necessary, as well as provide grain to Russian producers.
So far, interventions have been stopped.
«In accordance with the decision of the Ministry of Agriculture of Russia and the letter of the agent (JSC United Grain Company»), on February 1, 2022, the sale of grain from the federal intervention fund at exchange trading is completed as part of the execution of the order of the Government of the Russian Federation No. 817-r dated March 31, 2020, bidders for the sale of grain from the intervention fund in 2020-2021 have been denied access to trading,» the National Commodity Exchange reports.
Among other things, the Ministry of Agriculture also plans to create a specialized sugar fund to use it for the same purposes. It is planned that at the first stage its volume may reach 250,000 tons.
