Russia's agriculture Ministry has no plans to purchase interventions on the grain market. "Today, on behalf of the Minister, the head of the government is running a large research team (study ed) state of the grain market. Today's stage does not require the intervention and application of the tool on behalf of the state for intervention", — said the first Deputy Minister of agriculture of Russia Dzhambulat Hatuov in Volgograd on Wednesday.
"But this tool is, in the case of the need to protect farmers, it (the mechanism of purchasing interventions of grain – ed.) will be applied", he added.
This spring, the Minister of agriculture Alexander Tkachev said that the purchase interventions may begin in the grain market in case of need in August.
The Ministry of agriculture in late March suggested that the limits of the minimum purchase price for the possible implementation of such interventions.
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.
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Translated by service "Yandex.Translation"