Reference
The draft directive of the Government, “On the Realisation of 2013 Harvest Grain from the Reserves of the Intervention Fund of Agricultural Products, Raw Materials and Food in the First Six Months of 2014 During State Commodity Interventions Without Stock Trading”, has been developed by the Ministry of Agriculture to implement the instruction following the Government meeting of October 10, 2013.
In accordance with the regulations for state purchasing and commodity interventions to regulate the market of agricultural products, raw materials and food, approved by the Government Resolution No 580 of August 3, 2001, state commodity interventions are implemented through holding stock trading.
The Government’s decision allows for the possibility of the realisation of reserves of the federal Intervention Fund of agricultural products, raw materials and food (hereinafter referred to as the Fund) without holding stock trading.
In accordance with the directive, the realisation of 2013 harvest grain from the Intervention Fund in the first six months of 2014 during state commodity interventions will be performed without stock trading.
It is also stipulated that the 2013 harvest grain will be disposed to agricultural producers it was purchased from for the Intervention Fund during state purchasing interventions (held from October 15, 2013) in volumes not exceeding its supplies and at the price of its purchase while taking account of the expenses for grain storage and insurance, as well as taxes established by Russian law.
The implementation of the directive will allow agricultural producers to buy grain from the Intervention Fund in case of a beneficial price situation on the grain market in the first six months of 2014, and sell it on the market at a higher price, thus receiving additional working assets.