Russia will start selling grain from the intervention fund again
Trades will take place on January 20, 21 and 22
January 15, 2021
In December, there were about 170 thousand tons of grain in the intervention fund
Russia will resume the sale of grain from the intervention fund, the press service of the National Commodity Exchange (NTB) said. The auction will take place on January 20, 21 and 22. Not only livestock breeders, flour mills and feed mills, but also grain exporters will be allowed to buy grain, the report says. The functions of the state agent for the disposal of the state grain are performed by the United Grain Company
Bidding for the sale of grain from the intervention fund in accordance with the government order of March 31, 2020 began on August 7 last year and was suspended, according to NTB, on November 27. During this period, 176.9 thousand tons of grain were sold for almost 2.1 billion rubles. According to the government's order, up to 1 million tons of wheat and feed barley can be sold from the intervention fund in 2020-2021. However, according to the Ministry of Agriculture, at the beginning of December, only 170.8 thousand tons of grain remained in the intervention fund. In general, over the past year, 1.6 million tons of grain were sold at togas for 19.2 billion rubles.
According to the NTB, on January 20, participants will be offered 7.2 thousand tons of wheat of the 4th class of the harvest of 2016, 11.2 thousand tons of wheat of the 3rd class of the harvest of 2016, as well as 169 tons of barley of the 2015 harvest and 945 tons barley harvest in 2014 - in the amount of 19.6 thousand tons of grain. On January 21, 12.3 thousand tons of wheat of the 3rd class of the harvest of 2015 will be put up for auction, almost 4.2 thousand tons of wheat of the 3rd class of the harvest of 2014, the same amount of barley of the 2013 harvest. On the final day - January 22 - 19.4 thousand tons of wheat of the 4th class of the harvest of 2015, 17 thousand tons of wheat of the 4th class of the harvest of 2015 and 5.1 thousand tons of barley of the harvest of 2016 will be offered. Thus, about 82 thousand tons of grain can be sold in three days.
Government interventions in the purchase and sale of grain have been carried out in Russia since 2001 to stabilize domestic grain prices. With a high yield, procurement interventions help remove the surplus from the market and support prices, which allows farmers to avoid losses. Commodities, on the other hand, are designed to lower prices by injecting grain from the state fund into the market. However, now the market is unlikely to feel any effect from the sale of grain from the intervention fund due to their insignificant volume.
In May last year, the Union of Grain Exporters proposed to consider the possibility of "resetting" the existing intervention fund and create a food grain fund on its basis, primarily to provide the flour-grinding industry with raw materials at affordable prices. Later OZKreported that, together with the Ministry of Agriculture, they are working on a new concept for the selection of grain keepers of the Federal Intervention Fund to increase control and ensure the interests of market participants during interventions. They also discussed the issue of increasing the grain reserves in the fund to 6 million tons for at least three years. However, the fund in the new format has not yet been created, procurement interventions for grain of the 2020 harvest have not been carried out.