The Minister recalled that the Ministry of agriculture has already approved the minimum purchase price of grain for intervention.

"Grain interventions will start in August and we have already announced minimum prices", — said the Minister.

Alexander Tkachev said that currently grain prices are falling, "we lose in the price". At the same time, he said that "there are factors that can affect the price increase and make it fair."

"First of all, the continuation of the dialogue and the lifting of all restrictions on Turkey. This is the first. A political and economic issue, he said. — And second the dollar. For our economy on all fronts is very important course, of course, not 55 (rubles to the dollar – ed.) and not 59, and 60 and above. Then the price will be fair, we get about 10 rubles per kg of wheat of 3 class".

We will remind, the Ministry of agriculture of Russia proposed limits on minimum purchase prices for possible intervention in the market of grain and milk.

In the case of a decision on carrying out in the 2017-2018 marketing year procurement interventions on the grain market, the Ministry of agriculture proposes to establish the following prices:

• soft milling wheat 1st class – 12,5 thousand rubles per ton; wheat of 2nd grade – 11, 5 thousand rubles per ton; wheat of 3rd grade – 10,3 thousand rubles per ton; wheat of 4 class – 9 thousand rubles per ton, wheat of 5th class – 7.6 thousand rubles per ton;
• food rye of group "A" – 7.4 thousand rubles for ton;
• feed barley – 7.6 thousand rubles per ton;
• corn class 3 – 7.9 thousand rubles per ton.

As of 1 January 2017, in the intervention Fund, there were 4 million 035 thousand 834 tons of grain, of which more than 86% of the grain harvest in 2014-2016. Including wheat 3rd class – 1,709 million tons, wheat of 4 class – 1,568 million tonnes.

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 when prices rise - to stop the rise in the sale of grain from the intervention Fund.

Photo: opentown.org