On August 19, 2016 Deputy Director of agriculture in Russian agricultural Ministry Vladimir Volik gave the official start of purchasing interventions in the grain market.
The first region of intervention will be the Republic of Crimea, where harvesting of grains and legumes was almost completed. It is about 1.5 million tons of grain. In Crimea it is planned to buy up to 100 thousand tons of wheat of 3-5 classes.
Intervention means the public procurement of surplus harvested crops that form the intervention Fund in order not to allow prices of agricultural products to fall at high yield. Prices in the course of grain interventions are formed upon market demand, export activity and general situation on the world grain market. Precise dates of interventions absent, they can be held in March and October but the best time is the end of August – beginning of September.
The Minister of Agriculture of Russia Alexander Tkachev called the outstanding result of the present 74 million tonnes of harvested grain (a third more than in 2015). “This is an outstanding result. A matter of pride. Timely support farmers prepare for planting and favorable weather conditions,” he said, Recalling that this year’s sown area increased to 79.6 million hectares (+600 thousand hectares).
The map of regions where intervention will be held was not yet been determined. According to V. Volin, “it’s not exactly the export regions”. “By mid-September we will understand the capabilities of the guardians, and later the wishes of the producers,” he explained in response to reporters ‘ questions on a conference call August 19, 2016. To harvest and assess its volume and quality, as well as the world market, it is difficult to tell made future intervention.
In 2017 it is planned to start dairy intervention to stabilize prices for dairy products, “if we manage to amend the Federal law on powdered milk”, – said V. Volin. Strategy on dairy intervention will be created at the end of November – beginning of December 2016.
Perhaps an export duty on wheat will be reset on 01 September 2016. Clarity on the question of zeroing of duties is in the process of discussions for the moment. “We are talking only about a temporary reset, but not for the abolition of duties, – said V. Volin,” because such a tool is useful.”