Russian budget suffers huge losses because of the surplus of grain the state granaries have to keep, according to reports on Wednesday (May 19).

 

The keeping of grain stocks costs federal budget nearly RUB1 billion (US$30 million) per month. Putin offered his deputy Victor Zubkov to develop the scheme of state interventions on the grain and food markets.

 

In 2010, the federal stocks consist of 10 million tonnes of grain. In 2008, the grain stocks amounted 2.5 million tonnes. Stocks rose because the state purchased the crops from the farmers but failed to sell it by existing market price in 2009. Russian ministry of agriculture said it looked for grain buyers in Cuba, Turkey, Egypt, Brazil and other countries.

 

The ministry forecast grain harvest this year will be 97 million tonnes, the same level of 2009.