2 Oct 2009 16:20

Grain interventions to begin this month - Skrynnik

MALOARKHANGELSK. Oct 2 (Interfax) - Grain purchase interventions will begin in October in volumes to be determined by the market situation, Agriculture Minister Yelena Skrynnik said on Friday at a meeting in Orel region on fall field work and the situation on the grain market.

"The volume of the grain purchases will depend on future market developments. We plan to begin the interventions in October," she said.

The purchase prices for grain for the intervention fund were announced in March this year.

"In making grain purchases on the exchange, the price will decline over the course of trading. Hence, the final purchase price will be lower than the indicative price," she said.

United Grain Company is the agent for the state purchases, she said.

A total of 8.060 million tonnes of grain were purchased last year for 38.6 billion rubles. That amount remains in the state intervention fund.

"It was impossible to sell due to the low prices on domestic and global markets. The costs of its storage are a serious expense," she said.

However, she said, her ministry is technically and organizationally ready to conduct new interventions.