December 17, 2010

Russia's leader to release government grain stocks

The Russian government is releasing grain from its intervention stocks to help farmers hit by a severe drought unrivalled in more than a century, Prime Minister Vladimir Putin said Thursday (Dec 16).

"Yesterday evening I signed an order and today two government decrees will be issued. We are starting the distribution of grain from the intervention fund," he said.

Russia has 9.64 million tonnes of grain in its intervention stocks, around one third of which is feed grain.

The president of the Russian grain Union lobby group, Arkady Zlochevsky has said the government could start grain sales in the first quarter of 2011, commencing the process in January so that the grain could reach consumers by March.

But he also said the union had lobbied for the start of the process in December so that farmers could benefit sooner.

The government intends to sell the grain at low fixed prices to the regions worst hit by the drought.