August 16, 2010

Russia loses one-quarter of grain seeds

Abnormal heat and drought have deprived Russia of 25% of grain seeds and many farm enterprises are on the verge of bankruptcy as a result, said Russian president, Dmitry Medvedev.

The government is aware of the situation, and is in control. He said that a decision had already been made to provide financial assistance to farming companies had found themselves in a critical situation, worth RUB35 million. In addition, enterprises should get aid from neighbouring regions. Inter-regional cooperation is essential in this case.

There is a need to exercise strict control over the allotted funds, Medvedev said. Speaking about grain interventions, he noted that the size of the intervention fund totalled 10 million tonnes at the moment, which were intended to be used as a security cushion. Interventions are to be held in the first run for the 27 regions most affected by the drought.