The Ministry of Agriculture is examining the option of expanding grain purchases through the intervention fund for the current year. The move is being considered to stabilize prices for major crops and reduce fluctuations in the domestic market. A report published by Vedomosti, citing a letter from Oksana Lut, the First Deputy Minister of Agriculture, outlines this potential step as part of broader market management efforts.
The correspondence was sent to Sergey Katyrin, President of the Chamber of Commerce and Industry of the Russian Federation, with a date noted in late February. Earlier remarks by the same official indicated a different stance, suggesting that Russia had no plan to intervene in grain trading, a position that was subsequently reexamined in the context of market dynamics and supply expectations.
The ministry is exploring whether additional grain purchases could bolster the intervention fund in 2023. The current projected volume for intervention purchases aligns with domestic wheat consumption in the first quarter of the previous year. In the prior season, the fund absorbed about 3.08 million tons of grain to support market stability and price floors for farmers and buyers alike.
On the demand side, total annual consumption of staple foods such as wheat and rye in the Russian market is estimated at around 10.5 million tons. Rosstat’s agricultural outlook for the 2022–2023 season, which concludes at the end of June, points to a total crop yield near 153.8 million tons for the country, underscoring the scale of production and the ongoing need for prudent policy tools to prevent excessive price swings and ensure food security while accommodating export channels.
As for export policy, Oksana Lut indicated that there would be no adjustment to the grain export quota for the current agricultural year. Nevertheless, the ministry does not rule out revisiting quotas if market conditions favor more active participation by exporting companies, signaling a willingness to recalibrate policy in response to evolving supply and demand pressures, currency movements, and international market signals. In this context, stakeholders are urged to monitor official statements and Rosstat updates to gauge the likely trajectory of grain prices, harvest outcomes, and the balance between domestic needs and export opportunities.