Global Trade Alert

On 26 March 2014, the Russian agriculture ministry set the minimum purchase prices for grains, valid between July 2014 and July 2015. 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.

The VAT-inclusive per-tonne prices, depending on the federal district, are set as follows:

• wheat, third class - 6400 rubles in the Ural, Siberia and the Far East and 6750 for all other federal districts (2013-2014 price - 6250 and 6550)
• wheat, fourth class - 6200 and 6450 (preceding period - 6050 and 6300)
• wheat, fifth class - 6000 and 6100 (preceding period - 5700 and 5950)
• rye, A grade - 5100 in all districts (preceding period - 4950)
• forage barley - 5150 in all districts (preceding period - 5050)
• corn, third class  - 5600 in all districts (same as for the preceding period). 

The increase in minimum prices makes government intervention, and subsequently, trade distortion, more likely. Hence, this intervention is coded "red".

The Order of the ministry is in force between 1 July 2014 and 30 June 2015.