November 15, 2011

Russia may import 1.5 million tonnes more grain

The government of Russia is still about to buy grain from farmers to add to its intervention supply this crop year, although it has set lower acquisition target volumes, First Deputy Prime Minister Viktor Zubkov said on Monday (Nov 15).

"Regions are trying to export their surplus grain, but we may have to buy some grain, maybe 1.5 million tonnes, maybe 1.4 million to the (government) intervention stocks," said Zubkov. "We have money for that.

Russia regulates grain prices with intervention tenders, selling grain from its stocks when prices are high and buying it when the prices are low.

The government has said it will not hold intervention purchase tenders in the whole of the country but only in Siberia and the Urals, located far from export ports.

It has already cut railway tariffs to facilitate exports from Siberia and from the Urals region of Kurgan to support local prices, and it plans to allow farmers to buy back grain from intervention stocks if prices rise.