Russia has bought another batch of grain for its intervention fund. According to a statement of the National Mercantile Exchange, at its auction, 46,800 tonnes of grain were purchased by the state to the tune of 714.5 million rubles ($11.6 mln), reports TASS.
"At the National Mercantile Exchange, regular exchange auction was held as part of state procurement interventions in the grain market, as a result of which 46,845 tonnes of grain were sold for a total of 714.5 mln rubles," the report says.
Earlier, Russia’s Agriculture Ministry announced plans to purchase up to 3 million tonnes of grain to the state intervention fund. In the future, in the event of a sharp rise in prices, grain will be sold to Russian flour milling and baking enterprises, and this will allow the market to "cool" and maintain a stable situation, the ministry noted.
The Russian authorities have carried out state interventions in the form of purchase and sale of grain since 2001 to regulate domestic prices. As part of purchasing interventions, the state, in order to support producers, purchases grain from farmers for an intervention fund, and as part of sale interventions, it sells it in order to prevent price increases.