ANNOUNCEMENT 05 Oct 2015

In October 2015, the Russian agriculture ministry increased minimal purchase prices for wheat, set in March. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Agriculture of Russia. Order N460 dated 5-10-2015, О внесении изменения в приказ Минсельхоза России от 31 марта 2015 года N 119 (On amendments to the order of the Ministry of agriculture of Russia dated 31 March 2015 N119), https://rg.ru/2015/10/14/minselhoz-dok.html

Original act: Ministry of Agriculture of Russia. Order N119 dated 31-03-2015, Об определении предельных уровней минимальных цен на зерно урожая 2015 года при проведении государственных закупочных интервенций в 2015-2016 годах (On the determination of the limit levels of the minimum prices for grain in the crop of 2015 during government procurement interventions in 2015-2016), http://www.garant.ru/products/ipo/prime/doc/70903752/

Inception date: 15 Oct 2015 | Removal date: 01 Jul 2016
Still in force

Price stabilisation

On 5 October 2015, the Russian ministry of agriculture amended its 31 March 2015 Order setting state purchase triggering prices in 2015-2016. The October order significantly increased threshold prices for all grains, but corn, which remained unchanged. The ministry also made all prices uniform across the country, eliminating federal-district-level differences. When market prices fell below the minimal 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, valid throughout the country, are set as follows:

  • wheat, third class - 10900 rubles (prices set in March were 9500-9700, depending on the federal unit)
  • wheat, fourth class - 10400 (March prices varied between 8700-8900)
  • wheat, fifth class - 8800 (8400-8600)
  • rye, A grade - 7400 (6400)
  • forage barley - 7500 (6500)
  • corn, third class  - 6900 (unchanged). 

The October prices are significantly higher than the March prices, which were, in turn, a sizable increase from previous years' prices. 

The prices set by the October order, published on 14 October, are valid until 1 July 2016. 

AFFECTED SECTORS

 

AFFECTED PRODUCTS