Food Industry News

RGU: cereals intervention helped, but the effect is small

State grain interventions help Russian farmers, but the efficiency of the mechanism is one of the lowest in the world, President of the Russian Grain Union Arkady Zlochevsky said in an interview with economic observer Alexei Bobrovsky.

There are “two troubles” in Russia: crop failure and harvest. “The harvest is a bigger problem, this is due to the market situation, this is an unplanned harvest, there is nowhere to put the surplus and prices are falling, it hits the producers,” noted Arkady Zlochevsky.

“Grain state interventions help. The efficiency of the mechanism is one of the lowest in the world, he believes. -

We are dancing down from the minimum purchase prices, the price fell by 1 thousand rubles. following the results of yesterday's trading ”.

“And the whole world enjoys guaranteed minimum prices, which are calculated at cost,” Zlochevsky points out.

“This is the cut-off price,” and it cannot be lower during the bidding process. USA, Canada, Europe have been using minimum guaranteed prices for a long time.

Zlochevsky also proposed introducing a buyback mechanism at a guaranteed price if market conditions improve.

In this case, the farmer can buy his crop from the state at the same price as he sold it, and then sell it at a profit.

“This would be an important guaranteeing mechanism for the producer,” said the head of the Grain Union.

See also ... 17/08/2016 RGS: bankruptcy due to a record grain harvest 30/09/2013 The Ministry of Agriculture may lower the forecast for grain harvest for the current year / 18 RGS: we are ready to supply grain, but China will not let it in 04/2013 RGS proposes to stop commodity intervention 25/02/2016 Grain interventions will mainly affect Siberia and the Far East 12/07/2012 Russia is ready to start delivering grain to Brazil 08/12/2014 The Russian Federation may export 23-12 million tons of grain in the new season 2014/2015/18 Russia in 04 may receive a record sunflower harvest2013/02/10 Export duty on wheat is being prepared zeroed not

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