Until July 2011, the state will sell more than half of the grain from the intervention fund

The Ministry of Agriculture plans to sell more than half of the grain from the intervention fund until July 2011, which should lead to a decrease in wheat prices, the Vedomosti newspaper writes with reference to the director of the Department of Regulation of the Agricultural Revolutionary Market and the development of the infrastructure of the Ministry of Agriculture Ilya Shestakov.

"Given the situation in the grain market, this season, it is planned to implement the main amount of the reserves of the intervention fund," the publication of Shestakov quotes.

What volume of grain is in question, the official did not say. More than half of the fund will be sold, says an employee of the ministry. The decision on the volume of grain put up for sale will depend on the situation in the market.

According to the Ministry of Agriculture, for the year, from July 1, 2010 to June 30, 2011, grain consumption in Russia will be 77 million tons. Grain crop in 2010 will be 60.3 million tons in net weight, another 26.3 million tons - passing residues, including 9.64 million tons of the grain of the intervention fund. Thus, at least 6.5% of consumption may come to the volume of grain from the fund from the fund in the current season.

Until now, officials have only talked about the implementation of capacity grain (third of the fund). Deputy Prime Minister Viktor Zubkov called the spring of 2011, Minister of Agriculture Elena Skrynnik - the first quarter.

At the same time, Zubkov promised that the fund would sell grain at the purchase price. According to MICEX, forage wheat (5th grade) and barley were purchased at state-owned years in 2008/09 of an average of 4046.1 rubles per ton and 3723.8 rubles per ton, respectively.

Food wheat of the 4th class was purchased on average of 2455.7 rubles in 2005/06 and 5101.6 rubles per ton in 2008/09. According to Icarus (the Institute for the Foreign Market Conjuncture), today the price of wheat of the 4th grade on the southern elevators exceeds 6,000 rubles. According to the National Union of Grain Producers, the prices for foal grain reach 7000-7500 rubles per ton.

Massive grain sales from the intervention fund will help to curb prices, said CEO Icarus Dmitry Rylko. True, everything will depend on the mechanism of the implementation of grain, says Andrei Sizov, Executive Director of the Council of Ministers. So far there is no information on this score. Earlier, officials stated that the grain would be distributed between the injured regions without auctions at the request.