The state on Tuesday, November 8, bought from farmers 31 185 tonnes of grain (from 32 400 tons) for a total amount of RUB 287 843 625 reported NTBs.

Main purchased volume was wheat class 4 – 18 900 tonnes in the amount of 185 783 625 rubles. Also purchased 9 585 tons of wheat class 5, the purchase amount of which has reached 80 460 000. Wheat class 3, bids were listed. Barley purchased in the amount of 2 700 tons for 21 600 000.

The average prices of purchase of grain as of November 8 were:

• wheat of 4 class – 9 829,8 rubles/t;
• wheat 5 class – 8 394,4 rubles/t;
• barley – 8 000,0 RUR/t.

The mechanism of procurement (procurement by the state grain) and commodity (selling grain from the state intervention Fund) intervention operates in Russia since 2001. It is aimed at the stabilization of prices on the grain market and support agricultural producers. When prices fall, the government removes excess grain from the market in order to stop its depreciation, with a sharp rise in prices - is selling grain from the state Fund and thereby stops its rise in price.