September 3, 2010

Russian leader orders grain prices to be in control

Russia's President Dmitry Medvedev has commanded on Thursday (Sept 3) for grain transportation costs to be lowered in Saratov.

"In order to ensure (grain) transportation, I have instructed the government and the (state-owned) Russian Railways joint-stock company to find a solution regarding tariffs for this period," said Medvedev.

This is in response to consequences of the summer drought. The president said the situation was difficult, but far from being "critical", adding that those instigating price hikes must be prosecuted.

"Those who are engaged in inflating prices and getting unearned profits, must be dealt with by the Prosecutor General's Office, Interior Ministry, and anti-monopoly and tariff services," he said. He also assured Russians that meat, milk and sugar were not in short supply at the moment.

The hottest summer in 130 years has caused a serious drought which could lower grain production to 60-65 million tonnes this year.