Till July 2011, the Government of the Russian Federation will sell more than a half of grain volumes from the Intervention Fund of the Russian Federation. Ilia Shestakov, the Director of the Department of Regulation of Agricultural food market and Infrastructure development of the Ministry of Agriculture informed about such plans.

Taking into account the current situation on the grain market in the current season (July 1, 2010 – June 30, 2011), the Government plans to sell the major volumes from the Intervention Fund, stated the Director.

According to data of the Ministry of Agriculture, during the year, from July 1, 2010, to June 30, 2011, the general grain consumption in Russia will total 77 mln tonnes. Grain production in 2010 will total 60.3 mln tonnes in clean weight (in 2009 – 97 mln tonnes), the carry-over stocks – 26.3 mln tonnes, including 9.64 mln tonnes of grains of the Intervention Fund. Thus, in the current season the planned intervention fund grain volumes for the further selling will total over 6.5% of the general grain consumption in the country.

Meanwhile, the officials talked just only about feed grain selling (one third part of the Fund). Victor Zubkov, the Vice Prime-Minister of the Russian Federation, promised that the Fund will sell grains at the purchasing prices. According to data of the Moscow Interbank Currency Exchange, 5 grade feed wheat and barley were purchased on the Governmental interventions in 2008/09 MY, the average prices totaled 4046.1 RUR/t and 3723.8 RUR/t, respectively. 4 grade milling wheat purchasing prices totaled 2455.7 RUR/t in 2005/06 MY; and 5101.6 RUR/t in 2008/09 MY. According to data of experts, to date the price of 4-grade wheat at elevators in the southern regions exceeds the level of 6000 RUR/t. According to data of the National union of grain producers, prices for feed grains even reach the level of 7000-7500 RUR/t.

Mass grain selling from the Intervention Fund will assist to hold the prices growth, stated the experts.

I.Shestakov also announced that according to the state budget-2011, 6 bln RUR are devoted for all the expenses covering the Intervention Fund grain servicing. In May 2010, V.Zubkov stated that the Government spends about 1 bln RUR per month for grain storage in the Fund. Annually – 12 bln RUR. Thus, at the expense of the Fund volumes decrease, the Government will get the double financial economy.