Volga Baikal AGRO NEWS Update on the Grain & Sugar Purchases !!!
In Russia, purchases of grain and sugar to the state fund will begin in autumn !!!
As early as this fall, the Russian Ministry of Agriculture will be ready to purchase grain and sugar for the renewed state fund, Oksana Lut, First Deputy Minister of Agriculture of the Russian Federation, said. This is another tool for regulating prices for end products and helping farmers.
To support flour producers, the fund will form an irreducible grain stock of 3 million tons. This corresponds to a 2-3-month need for processors. In addition, it is planned to create a sugar fund in the amount of 250 thousand tons.
So far, the mechanism of state interventions has operated only in relation to grain. In 2021, it was decided to reformat it: to focus on supporting millers, increasing the stocks of food wheat and rye, but excluding corn, barley and feed wheat. In addition, it was decided to create a state fund for sugar.
The United Grain Company (acting as the state intervention agent) said that now the stocks of the “old” intervention fund of grain are about 60.5 thousand tons in the amount of 620.2 million rubles. The competition for the selection of insurance companies for the renewed state fund will end in the second half of March. The first storage agreements are planned to be signed by mid-April.
For flour and sugar producers, the state fund is an additional buyer, says Daria Snitko, head of the Gazprombank Center for Economic Forecasting. Purchases to the state fund in the autumn, when grain and sugar beets of the new crop will be supplied to the market, will help support the price for producers. And when sales from the fund begin, this will not allow the goods to rise in price for the buyer. In addition, the creation of funds is the emergence of additional storage capacity between seasons, which is especially important for sugar producers. If this mechanism replaces the regulation of prices, especially the establishment of a maximum price, it will definitely benefit producers, the expert believes.
Restarting the intervention fund will diversify the tools for regulating the domestic market and supporting domestic processing. Having solved the problems of the domestic market, Russia can count on the development of grain exports, adds Eduard Zernin, Chairman of the Board of the Union of Grain Exporters.
FSBI “Agroanalytics Center”
Source: RG.ru (Rossiyskaya Gazeta)
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