October 12, 2009
Russian to start grain and milk interventions
The Russian government planed to start its grain and milk interventions during the next 10 days and spring 2010 respectively, Agriculture Minister Yelena Skrynnik said on Friday (Oct 9).
The Agriculture Ministry and the United Grain Company were technically prepared to carry out interventions, but there were small problems with the allocation of funds, which would be resolved within the next 10-14 days, Skrynnik said.
The aim of the interventions was not to buy all the grain produced by farmers, but to provide the market with price guidelines, she said.
The government allocated Rbs10 billion (US$338 million) for grain purchases this year. Last year, the government spent Rbs38.6 billion (US$1.3 billion) and bought 8.6 million tonnes of grain.
The interventions in the milk and dairy products markets would begin during the period of "big milk", when milk and dairy products overproduced in Russia, she said.
In addition to milk, pasteurized milk, butter and cheeses can also become part of the intervention stocks. These purchases will remove 300,000 tonnes of milk surplus from the market.
The interventions will be financed through the credits of some Russian banks in the amount of Rbs2.8 billion (US$94.6 million), with about Rbs300 million (US$10.1 million) to be spent on storage of purchased products.
Total governmental support to the dairy industry in the current year will amount to Rbs27.2 billion (US$919 million), including Rbs21.2 billion (US$716 million) to subsidise credit interest rates.
US$1 = Rbs29.595 (Oct 12)
