Ministry of Agriculture agreed with the FAS about minimum prices for grain in case of intervention
The Ministry of Agriculture of the Russian Federation has agreed with the Federal Antimonopoly Service on the limits of the minimum prices for grain of the 2019 crop in case of making interventions in 2019-2020.
The corresponding document was published on the portal of regulatory legal acts.
For the period from July 1, 2019 to June 30, 2020, the following limit levels of minimum prices for grain were agreed upon with the Federal Antimonopoly Service of the Russian Federation; upon reaching them in the years 2019-2020, public procurement interventions are carried out for the 2019 grain.
Third grade soft wheat is 9,900 rubles per ton in the Central Federal District (CFD), in the Southern Federal District (SFD) and the North Caucasus Federal District (North-West Federal District) - 11,100 rubles per ton, in the Volga Federal District (VFD) - 8,600 rubles per ton, in the Ural Federal District (UFD) - 9,600 rubles per ton, in the Siberian Federal District (SFO) and the Far Eastern Federal District (DFO) - 8,400 rubles per ton;
Fourth grade soft wheat in all subjects of the Russian Federation, prices including VAT may be: in the Central Federal District - 9,000 rubles per ton, in the Southern Federal District and North Caucasus Federal District - 10,200 rubles per ton, in the Volga Federal District - 7,600 rubles per ton, in the Ural Federal District - 8,500 rubles per ton, in the Siberian Federal District and DFO - 7 900 rubles per ton.
It is proposed to establish prices for soft wheat of the fifth class in the Central Federal District in the amount of 7,800 rubles per ton, including VAT, in the Southern Federal District and North Caucasus Federal District - 9,100 rubles per ton, in the Volga Federal District - 6,800 rubles per ton, in the Ural Federal District - 7,900 rubles per ton, in the Siberian Federal District and the Far Eastern Federal District - 7,300 rubles per ton;
The price for rye is not lower than the third class in all subjects of the Russian Federation at a rate of 6,700 rubles per ton including VAT. The price per ton of barley in the regions of the Russian Federation varies from 7,100 rubles to 10,600 rubles including VAT, and for corn not less than the third class - from 8,100 rubles to 9,700 rubles per ton including VAT.
The explanatory note to the document states that for calculating prices for soft wheat of the third, fourth and fifth classes, rye, barley and corn, were used average producer prices for July-October 2018 (according to Rosstat) the inflation index was 4.3%.
We remind that government interventions in the purchase and sale of grain (commodity) have been conducted in Russia since 2001 to regulate domestic prices. In autumn, after the crop arrives on the market, prices are reduced, so the state buys grain from farmers to support them, and in winter and spring to prevent price increases, the state sells grain from the intervention fund.