On March 23, the excessive grain stock of the Russian market due to over-harvesting and export problems was actually recognized as a nationwide problem. The authorities announced a sharp expansion of the means of regulating the grain market. The Cabinet of Ministers of the Russian Federation concluded that new purchases of grain up to 7 million tons (up to 5% of the crop) into the state fund are inevitable. In this respect Wrote Kommersant newspaper.
“Such a measure in the short term will stabilize prices and support agricultural producers, but it can cause difficulties for the government if grain needs to be sold from the state fund. So far, officials still expect to drive a significant part of the surplus out of the country: in the near future … A “grain decree” will be presented to the White House – essentially repeating the “EU gas ultimatum” and, as officials expect, will free agricultural exports from sanctions restrictions. comes from herds.
On March 23, Russian Prime Minister Mikhail Mishustin in the State Duma announced a record grain harvest of 157 million tons. The Prime Minister said that it supplies 177.8% of domestic demand for grain (with a value of 95% in the food safety doctrine).
“One of the means of combating the sharp decline in prices and profitability of the agro-industrial complex remains the mechanism of procurement interventions, in which the state withdraws “excess” products from the market and buys them for state funding. The last such purchases were made in 2022: then 3 million tons of grain worth 47.1 billion rubles were purchased for the state fund. In 2023, the authorities did not plan to make new purchases, despite the objections of market participants, ”says the article.
But on Thursday, Deputy Prime Minister Victoria Abramchenko, who oversees the Russian agri-industrial complex, said the government is “evaluating the possibility” of purchasing up to 7m tonnes of grain in addition to state funding. In 2023, this will require another 11 billion rubles. financing, and in the next two years – more than 20 billion rubles.
The 10 million-ton “ceiling” of the State Fund was reached in 2010.
Source: Gazeta
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