Ministry may sell 1.5 mln tns of wheat from state fund 2018–2019

MOSCOW, Jul 11 (PRIME) -- The Agriculture Ministry plans to sell up to 1.5 million tonnes of wheat from the state intervention fund in 2018–2019 both domestically and for exports, the ministry said in a report published on the government’s legal website late on Tuesday.

“In order to minimize federal budget spending, the Agriculture Ministry plans to sell wheat from the reserves of the federal intervention fund in 2018–2019…that was purchased during state procurement interventions in 2014–2016, on the local Russian market and/or for exports amounting to up to 1.5 million tonnes,” the report read.

The ministry also suggested selling grain from the state intervention fund without any exchange trading if the grain is sold under intergovernmental agreements in line with a government’s decision.

The ministry also suggested that the government should compensate a state agent of grain interventions – currently the United Grain Company – the difference between the price of grain and the price the agent had paid for it during previous interventions.

In December 2017, the government signed a ruling allowing the ministry to sell up to 500,000 tonnes of grain for exports from the fund in 2018. The National Mercantile Exchange (NAMEX) launched export sales of grain from the fund on June 20, and it has sold 122,500 tonnes of grain as of Tuesday.

As of July 6, the state intervention fund comprised 3.918 million tonnes of grain worth 36.188 billion rubles.

(62.4442 rubles – U.S. $1)

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