The Russian government plans to sell two million tons of grain on the market beginning on Wednesday – out of the state fund’s seven million tons – in an attempt to bring down prices.
The measure will help stabilize grain prices which have risen 12 percent from the start of the year. Current market prices range from 5,700 rubles ($194.6) to 7,000 rubles ($239) per ton of grain in various regions, while the lowest state selling price will be 4,300 rubles ($146.8).
The grain of 2005, 2008 and 2009 harvests will be sold in trades in the country’s Southern, North-Western and Northern Caucasus federal regions where “there are a significant price growth and few grain reserves”, the Agricultural Ministry has said.
About 130 firms will participate in the first trades to sell 148,000 tons of grain on Wednesday, United Grain Company press-service told Prime news agency. The second round of trades is scheduled for April 5.
The Agricultural Ministry hopes the grain sales from the state fund will allow disengaging elevators for new harvest and reduce expenses to service reserves of the fund.
Russian Grain Union Vice-President Alexander Korbut said that the price decrease was not likely to be considerable because sales would be on local markets and firms closer to elevators would be the core buyers of the grain.