Russia may need grain interventions to stabilize prices - Putin
MOSCOW. Oct 14 (Interfax) - The Russian leadership does not rule out the possibility that it would have to carry out grain interventions to maintain the prices on the agricultural market.
While President Dmitry Medvedev and Prime Minister Vladimir Putin were greeting rural workers on their professional holiday at the State Kremlin Palace on Friday, they talked about low purchasing prices for grain.
A businessman from the Kurgan region complained that this price is currently 3 rubles per one kilo of grain.
"Why are the prices so low?" Medvedev wondered.
"The harvest is big. I think these are some speculations," the farmer said.
Putin noted that go-betweens are likely to take advantage of this, and Medvedev advised the farmers to set up their own cooperatives "and try to get rid of dealers in this link."
Putin suggested that, in this situation, "we could use the tool that we used in the previous years - I mean government procurements with the aim of maintaining the price."
Medvedev replied to this, "We will probably have to wait for some time until we finish reaping the harvest."
Putin said virtually 90% of grain, which amounted to 91.7 million tonnes as of October 12, has been harvested.
"And the harvest forecast is 95 million tonnes. Let's see what we have," Medvedev added.
The Kurgan farmer said, "It would be good if the prices on the agricultural market stabilize, because it's very hard to work without knowing the final result."
"This is why we will carry out interventions. We'll think about it. We only have to allot money. We'll certainly think about it," Putin replied.