19 december 2008

First Deputy Prime Minister Viktor Zubkov held a videoconference on more effective grain interventions in 2008 and 2009

Participants:
Mr Zubkov said at the videoconference that state purchasing interventions on the grain market were not prompt enough, which produces insufficient stimulation to agribusinesses to expand crop areas and boost grain production.

Mr Zubkov said at the videoconference that state purchasing interventions on the grain market were not prompt enough, which produces insufficient stimulation to agribusinesses to expand crop areas and boost grain production.

The official also said that grain transshipment tariffs differ greatly across Russia and need to be harmonised. He reminded his audience of his earlier instructions to cut infrastructural costs along "the whole chain of grain transportation across Russia." However, transshipment costs at various grain terminals range from 140 to 560 roubles per metric ton. " I think, the Federal Anti-Monopoly Service should see into such a situation", Mr Zubkov said. He said this situation was also affecting state interventions, because additional charges cut producers' profits.

Several policies were adopted in the wake of the conference. As Mr Zubkov said, trading at grain exchanges had to be extended to 5-6 days a week, and producers' trading costs had to be cut. He also said the rules of grain trading had to be changed to allow transactions even if there is only one bid, and to reduce the number of documents required to participate.

Mr Zubkov said it was also important to increase the number of accredited elevators.

The official emphasized at the videoconference that the farming sector would be "fully provided with financing, 866 billion roubles," and that it was the all-time high for the sector.