October 22, 2009
Russia registers grain sellers for intervention purchases
Russia's state grain trade, the United Grain Company, has started registering potential grain sellers for government intervention purchase.
No date has been set for the start of tenders, said Aram Gukasyan, deputy general director of the United Grain Company.
Agriculture Minister Yelena Skrynnik said on October 8 the government intended to start the interventions within 10 days. She also said the tenders would not be as extensive as in 2008-09, when the government bought over eight million tonnes of grain after a bumper crop of 108 million tonnes.
Intervention purchases will take place only in some regions.
Russia expects grain harvests to reach 90-93 million tonnes this year. With last year's carryover stocks, this could create a surplus of at least 19 million tonnes of grain.
Industry sources and analysts have questioned whether intervention purchases are necessary this season, as they could discourage exports and lead to a domestic grain glut.
