March 26, 2012

Russia completes 2011/12 season grain buying interventions

JSC United Grain Company announced about completion of the public purchasing interventions with grains of the 2011 yield, according to the letter of the Ministry of Agriculture of the Russian Federation dd. March 14, 2012.

According to the press-service of JSC United Grain Company, the purpose of interventions - to stabilise the domestic grain prices on the market, thereby supporting agricultural producers - was completely achieved.

During the period of the public purchasing interventions with grains of the harvest-2011, since November 29, 2011, to March 6, 2012, the Government purchased 419,310 tonnes of grains at the sum of RUB1.9 billion (US$0.06 billion).

The public purchasing intervention with the right of re-purchase of grain volumes by agrarians were held by the decree of the Government of the Russian Federation dd. November 14, 2011, and the decree of the Ministry of Agriculture dd. November 16, 2011. The feature of these purchasing interventions is that agricultural producers selling grains to the public intervention fund, are entitled to re-purchase the grain volumes at the price of grain selling minus expenses for grain storing, insurance, and after payment of taxes by Russian law, in the period from January to May 2012.

As of March 16, 2012, none of the participants of the purchasing interventions did not exercise the right of re-purchase.