Russia. Some regions to get extra quotas for reduced-rate transportation of grain

20.03.2018

According to the Russian Ag Ministry, the regions’ quotas for reduced-rate transportation of grain need to be adjusted. Among other measures, its officials confirmed the allocation of additional amounts for removing surplus grain from Novosibirsk and Omsk regions, which have already used up their quotas by now, reports UkrAgroConsult.

As a reminder, the Ag Ministry of Novosibirsk region requested the Ag ministry of Russia to increase the quota for subsidized grain rail shipments by another 100 KMT.

It was reported before that the United Grain Company was going to purchase 200 KMT of wheat in Novosibirsk region for shipping abroad.

The Ag Ministry believes this mechanism of grain market regulation is now more efficient than intervention purchases. It says RUB 3 Bl has been envisaged for rail freight subsidies this year. By contrast, storage of state fund grain cost RUB 9.6 Bl in 2017. It will cost RUB 8.6 Bl in 2018 if 0.5 MMT of grain is sold out of the fund and RUB 6.8 Bl if the sales reach 1.5 MMT.

In addition, to stabilize the situation in Russia’s grain market, the Ag Ministry will disburse another RUB 1 Bl to subsidize short-term loans for flour millers who will buy out grain in Siberian regions for bread baking.

 

UkrAgroConsult

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