ANNOUNCEMENT 29 Mar 2019

In March 2019, the Russian agriculture ministry set minimum state purchase prices for grains, valid in 2019-2020. 
 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Agriculture of Russia. Order N155 dated 289-03-2019, Об определении предельных уровней минимальных цен на зерно урожая 2019 года в целях проведения государственных закупочных интервенций в 2019-2020 годах (On the determination of the limit levels of the minimum prices for grain in the crop of 2019 for the purpose of conducting government procurement interventions in 2019-2020), http://docs.cntd.ru/document/554235832

Inception date: 01 Jul 2019 | Removal date: 30 Jun 2020

Price stabilisation

On 29 March 2019, the Russian agriculture ministry set the minimum purchase prices for grains, valid between 1 July 2019 and 30 June 2020. When market prices fell below the minimum prices, the government undertakes an obligation to centrally procure listed goods.

The Russian federal law "On Development of Agriculture (№264, 2006) allows price interventions with regard to wheat, barley, rye, corn and other products listed by the Government. To trigger such interventions, the Russian agriculture ministry has to publish and order and monitor prices.

Starting in 2019, the Government sets different prices for each federal district of Russia. The VAT-inclusive prices are set as follows:

  • wheat, third class, 8400 - 11000 rubles per tonne, with lowest prices in Siberia and Far East and highest prices in North Caucasus and the South. In the preceding period the federation-wide intervention price was set at 8900 rubles.
  • wheat, fourth class - 7600 - 10200 (preceding period - 7600)
  • wheat, fifth class (forage) - 6800 - 9100 (preceding period - 6400)
  • rye, third class and above - 6700 for all regions (preceding period - 5900)
  • barley - 7100-10600 (6500)
  • corn, third class and above - 8100 -9700 (preceding period - 7100). 

In 2019, the Ministry did not set minimum purchase prices for the highest quality wheat (classes 1 and 2). 

AFFECTED SECTORS

 

AFFECTED PRODUCTS