April 13, 2011
 

Russia suspends grain exchange trades amid lack of demand

The Russian government discontinued exchange trades of intervention grains because of an absence of demand, announced Viktor Zubkov, First Vice Prime-Minister of the Russian Federation.

He explained that the authorities provided the exchange trades in order to reduce grain prices on the local market. The government made the decision that the lowest grain price should hit RUR6,000/tonne (US$213), said Zubkov. The price also began dropping below the approximated level. However, there are no applications for provision of the exchange trades, highlighted Zubkov as of now.

According to him, the measures implemented by the government for sale of grains from the intervention fund, exchange and direct distribution of grains work effectively. However, if the local grain prices begin to rise, the government will renew the exchange trades.