Purchasing interventions in the grain market can go in December in several regions of the Russian Federation. "We do not exclude that in December in several regions of the Russian Federation, we will hold interventions to sustain those prices that should meet our producers", - said the first Deputy head of the Ministry of agriculture Dzhambulat Hatuov at a conference in the framework of the exhibition "Golden autumn".

This year the Ministry of agriculture has proposed a new mechanism to maintain the prices in the grain market - subsidizing of expenses on rail transportation of grain to export destinations. "Today, on behalf of the government of the Russian Federation, the Ministry of agriculture is finalising a mechanism which will allow to expand the geography of export deliveries of production of our farmers, in this process actively involved the Ministry of transport of the Russian Federation, Russian Railways", - said house. "We are talking about that costs associated with rail transportation of the Russian grain will be compensated <...> We expect that these costs will increase in price by an average of 1 thousand rubles", - he said.

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.

Earlier, the head of the Ministry Alexander Tkachev said that the zeroing of tariffs for transportation of grain requires about 3 billion rubles. This is especially true of the Volga region, the Urals, Siberia, to traders who will be allowed to export the grain, buying grain from these territories, outlying territories from the ports of Novorossiysk, South of Russia, said in September Tkachev. According to him, the new mechanism of support of export will allow to "remove" from the market of 2-3 million tonnes of grain and reduce pressure on domestic prices.

Earlier, Russian Railways has introduced a discount of 10.3% to the current tariffs for transportation of grain from stations Voronezh, Orel, Tambov, Orenburg, Saratov, Novosibirsk and Omsk regions. The reduction factor 0,897 entered into force on 1 October and will run until 30 June 2018.

At the end of the first quarter, the Ministry of agriculture approved the minimum prices for grain purchases to the state Fund. The Ministry predicted that purchasing grain interventions may start in August, but the final decision will be made based on market conditions.

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 of 3 class - 1,709 million tonnes of 4-grade wheat - 1,568 million tonnes.

Photo: report.az