October 5, 2009
Russia to start domestic grain buys in October
Russian plans to start long-awaited grain purchases from domestic producers this month, Agriculture Minister Yelena Skrynnik said on Friday (October 2), in a bid to support prices depressed by large grain stocks.
In a press conference in the Russian region of Oryol, Skrynnik told President Dmitry Medvedev said the volume of grain purchased will depend on the development of the market situation.
The government had promised to start buying grain in August, before postponing the start of purchases.
Industry sources and analysts have questioned whether intervention purchases are necessary this season, as they could discourage exports and lead to a grain glut at home.
Skrynnik said that intervention purchases would take place only in some parts of the country this season.
Russia purchased over 8 million tonnes of grain from last year's harvest of 108 million tonnes, the highest amount in nearly two decades.
Skrynnik repeated the official forecast for this year's grain crop of 90 million tonnes. Analysts have said that the crop could be bigger, at up to 98 million tonnes.
Russia's Economic Development Ministry, in its forecast for the country's development to 2012 seen by Reuters on Friday, estimated this year's crop at 90-93 million tonnes.
The ministry said Russia was unlikely to reach last year's crop volumes again before 2012. It forecast grain output at 90-95 million tonnes in 2010, 93-100 million tonnes in 2011 and 97-105 million tonnes in 2012.
