Bloomberg News

Russia to Set Maximum Grain Prices Within a Month, Ministry Says

February 17, 2012

Feb. 17 (Bloomberg) -- Russia’s government will approve within a month a range of maximum grain prices that would trigger sales from state reserves if breached in the market, Dmitry Bobkov, the Agriculture Ministry spokesman, said today by phone.

The maximum price for third-grade and fourth-grade milling wheat from the 2005 harvest would be 5,000 rubles ($167) and 4,500 rubles a metric ton respectively, according to a draft order on the ministry’s website.

The maximum for third-grade milling wheat harvested in 2008 will be 6,050 rubles to 7,550 rubles a ton in the European part of Russia, depending on the region. Prices for the 2009 crop can be as much as 6,050 rubles in the European part of the country and 6,600 rubles in the Asian area.

The maximum for fourth-grade milling wheat from the 2008 crop will be 5,400 rubles to 7,150 rubles in the European area. The 2009 crop can be sold at 5,400 rubles in the European sector and 5,300 rubles in Asian territories, according to the draft order.

Prices for 2008-harvest feed wheat can be 4,550 rubles to 6,000 rubles. Feed barley from the same year can be 4,550 rubles a ton across the country.

Milling rye harvested in 2008 and 2009 can be 4,300 rubles for the entire country, according to the draft.

State grain stockpiles in the so-called intervention grain fund are 6.7 million tons, Andrei Sizov Jr., managing director of SovEcon, said by phone in Moscow today. That doesn’t include 372,465 tons of wheat harvested in 2011 bought by the government from farmers so far this year, Sizov said.

--Editors: John Deane, Nicholas Larkin

To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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