The Ministry of Agriculture of the Russian Federation considers two scenarios of stabilization of falling grain prices: conducting procurement interventions and stimulating exports. This was reported to journalists by Deputy Prime Minister Arkady Dvorkovich.
"The Ministry of Agriculture is preparing proposals, the prices are quite low. There are two scenarios in the Ministry of Agriculture: one traditional, with interventions, the other one is connected with maximum stimulation of exports," Dvorkovich said, answering the question when procurement interventions in the grain market could begin in Russia. According to the vice-premier, now the proposed scenarios are compared and analyzed in order to understand which of them is "more effective in terms of costs and results for stabilizing prices at an acceptable level for all." The Ministry of Agriculture should submit proposals to the government of the Russian Federation within a week, said Dvorkovich.
Since the beginning of 2017, the Ministry of Agriculture has declared its readiness to conduct grain procurement intervention, if this is required by the situation on the market. In recent years, there has been a tendency to lower prices for grain. Earlier, Minister of Agriculture of the Russian Federation Alexander Tkachev said that the ministry was seriously studying the issue of grain interventions, and did not rule out that they could start in September this year.
Source: zol.ru.
