December 7, 2004

Russia Allocates RUB4.9Billion For 2005 Grain Intervention

The Russian government has allocated 4.9 billion rubles ($1=RUB29) out of the federal budget for grain intervention purchases in 2005, the government press service said.

The government has set the following prices for the purchase of grain harvested in 2004:

3rd grade soft milling wheat - RUB3,800 a metric ton

4th grade soft milling wheat - RUB3,000/ton

Group A milling rye - RUB2,500/ton

The total sum allocated by the government includes the costs of transportation and storage of the grain.

Agriculture Minister Alexey Gordeyev had previously said the government was planning to buy 1.55 million tons of wheat and rye harvested this year from domestic producers as intervention purchases.

The purchases are likely to include 1 million tons of third grade milling wheat, 400,000 tons of fourth grade milling wheat and 150,000 tons of milling rye.

Gordeyev said the timetable and conditions of the purchases would be determined at a later date, depending on the market situation.