In 2022, Russia may purchase up to 3 million tons
The state can purchase up to 3 million tons of withdrawals to the intervention fund as early as 2022, reported Ministry of Agriculture in your Telegram channel. Earlier it was planned to purchase up to 1 million tons of banknotes this year. The department is narrow, that it has every opportunity to expand such a supply of food consumption. Now the auctions are held weekly, more than 50 thousand tons have been purchased.
The average purchase prices for wheat of the 3rd class are about 14.4 thousand rubles / t without VAT, the 4th – about 13.7 thousand rubles / t, clarifies Ministry of Agriculture. “In the context of the expected high harvest, which pressures prices, the implementation of the state fund is a high demand for producers’ profitability. Ministry of Agriculture for its part, it is ready for farmers with registration on the stock exchange,” the statement says.
The last auctions on the National Commodity Exchange (NTB) were held on September 7, following the results of which 6.7 thousand tons were sold, of course, in the amount of 103.7 million rubles. Including 2.7 thousand rubles were purchased. tons of wheat of the 3rd class of the 2022 harvest by 42.7 million rubles. and 4.05 thousand tons of wheat of the 4th class of the harvest of 2022 for 60.9 million rubles. In total, since August 1, there have been 19 dangerous days, accidents from the events that have occurred: in total, 63.72 thousand purchases were purchased for 959.2 million rubles. The next auction is held on September 8 and 9.
The launch of the intervention fund, the state pursued the goal of supporting the grain market in the most problematic regions in terms of income realization, member of the Union of Exporters Eduard Zernin. He said “Agro-investor”, that we are not talking about the number of cases of the state reserve, there are “perfect and perfect mechanisms” for this, therefore the announced limit of 3 million tons is precisely the limit of state support, and not a measurement of the purchase indicator. “Whether this limit is chosen or not depends only on the agricultural sector and its understanding of the need for state support in the form of intervention purchases.”
According to Zernin, the state has taken all the necessary steps: it has set a purchase limit, selected an agent, accredited elevators, and completed the purchase auction on the stock exchange. “The low volume of trading at the moment indicates that there is no urgent need for this measure of state support, despite the loud cries of rare events. Most likely, farmers are still hoping for a market price increase, not taking into account the high volume of gross harvest, the supply of which will put pressure on prices,” commented Zernin.
He suggests that in the fourth quarter, under market pressure is real and the need to service loans, many agricultural producers go public and sell excess volumes in the intervention fund. “Therefore, today’s increase in the purchase limit to 3 million tons looks quite logical and timely,” says Zernin.
Director General of the Institute for Agricultural Market Studies Dmitry Rylko said:Agro-investorthat the increase in purchases in the state fund is a step in the right addition. Although this goal will be difficult to achieve, it is quite realistic.
A number of trades in grain at the NTB in August were unsuccessful. vice president Russian Grain Association Alexander Korbut then said that the lack of sales in the intervention fund may be due, in particular, to the requirement for the quality of implementation. “Now it’s a difficult situation with harvesting – a very large share of fodder, and food grains may not be in a hurry. In any case, it takes time and expansion of the geography of purchases,” he explained.Agro-investor“. Rylko time of the meeting, that in themselves the prices of interventions increase, but the conditions for participation in the auction are quite tough, and farmers are still reluctant to go into this project. The situation will develop when the cleanup is over and they will inevitably understand the difficult market conditions of the 2022/23 season.
In mid-August, the Association of Peasants (Farmers) and Agricultural Cooperatives of Russia (AKKOR), against the backdrop of a collapse in grain prices on the raw material market, turned to President Vladimir Putin with proposals to consider the situation. In particular, manufacturers asked the head of the US standard to launch large-scale intervention trading. Then Ministry of Agriculture therefore, it is assumed that until 2024 the reserves will be applied in accordance with 3 million and the estimated reserves.
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