April 11, 2012

Russian farmers buy back grain from state stocks for first time

For the first time, Russian farmers purchased back grain from the state under a programme Prime Minister Vladimir Putin's first deputy for agriculture introduced last year, state-owned United Grain Co. said.

The Kristina farm in the Omsk region of Western Siberia acquired 2,970 tonnes of third-grade milling wheat from the state reserves on April 2, the grain trader said on its website. The marketing season ends June 30.

The farm covered storage costs, while repurchasing the wheat at the same price it received from United Grain in November and December last year, the trader said.

Russia offered farmers the chance to buy back grain from January through May after selling to the stockpiles after the harvest, allowing them to benefit as record exports helped increase domestic prices. First Deputy Prime Minister Viktor Zubkov announced the program on November 14, saying Russia planned to acquire as much as 1.5 million tonnes from farmers for stockpiles.