Russia. Ag Ministry proposed new-crop grain prices for intervention purchases

14.03.2018

Russia’s Ag Ministry proposed minimum grain purchase prices, which, once reached, must trigger intervention purchases in the 2018/19 season. They are below prices set for the current marketing year, reports UkrAgroConsult.

The Ministry’s draft decree suggests setting the minimum price for 1st class wheat at RUB 10,900/MT (RUB 12,500 this season) and that for 2nd wheat at RUB 9,900 (RUB 11,500).

The respective price for 3rd class wheat is envisaged at RUB 8,900 (RUB 10,300), that for 4th grade at RUB 7,600 (RUB 9,000) and 5th grade price at RUB 6,400 (RUB 7,600).

The minimum rye price is proposed at RUB 5,900/MT (RUB 7,400/MT), the barley price at RUB 6,500/MT (RUB 7,600) and the corn price at RUB 7,100/MT (RUB 7,900). All the given prices include VAT.

Noteworthy is that, despite this year’s considerable drop in grain prices, no intervention purchases have been made as a tool for regulating the grain market. The Ag Ministry believes that subsidizing grain shipments from remote regions to ports is now a more effective tool to support prices.

 

UkrAgroConsult

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