Russian grain interventions could be 4.9 mln tonnes in 2012-2013
MOSCOW. Aug 31. (Interfax) - Grain interventions in Russia could run to 4.9 million tonnes in the 2012-2013 agricultural year, say materials for a meeting on the grain market situation chaired by Deputy Prime Minister Arkady Dvorkovich on Friday.
The materials were submitted to the government for signature by Deputy Economic Development Minister Andrei Klepach.
The interventions should begin when the harvest is in - not before September in regions with a grain shortage. Most of the intervention grain should be retained until February or March, when there is a risk that grain prices and demand will spike.
The materials do not contain any proposals to restrict exports.
Dvorkovich told reporters after the meeting that the interventions might begin this year. "Interventions might be carried out this year if prices rise considerably. The paperwork needed for this is ready," he said.
"Any decision will be reached quickly, in a matter of days," he said. "But there are no grounds right now to say interventions will begin in say two or three weeks, or two or three months. The timing and parameters of the interventions are not yet known," he said.
Dvorkovich did not name the interventions price. But he did say grain prices right now were "fairly close to the limit which is considered critical for triggering interventions - a few more percent and the decision will be reached," he said.
Flour prices and some types of bread have already gone up due to high grain prices, Dvorkovich said. "But it you look at the situation not over the course of two or three months but two or three years, then the situation has not yet gone beyond reason," he said.
If it is decided to begin interventions, the interests of the consumer will be taken into account above all else. At the same time, the government does not want to see grain market prices collapse [in the event of restrictions]. "This would have an even worse effect on the overall situation and result in problems with the harvest next year," Dvorkovich said.
Agriculture Minister Nikolai Fyodorov said his ministry was preparing for targeted interventions "on a regional breakdown, where it is needed to support flour and feed mills." "We're ready to respond at any moment, depending on prices and the situation," he said.
Dvorkovich, for his part, said all necessary instructions had been given to United Grain Company, which manages the intervention grain on the government's behalf.