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Russia Should Increase Grain Production Up to 150 Million Tons
March 14, 2017 10:45


Russia should increase grain production up to 150 million tons in the next ten years. This was stated by the Head of the Ministry of Agriculture Aleksandr Tkachev at the meeting in Novosibirsk, as TASS reports. “We must, first of all, deal with increasing efficiency” - the Minister said. “The fact that many do without fertilizers with low qualifications and without interaction with science does not make us happy. There is a huge potential in all this.”

According to Tkachev, we need to develop the markets in the Asia-Pacific region, with its countries buying about 27 million tons of grain per year. For this purpose it is necessary to develop the infrastructure: we need new ports, highways, terminals. Tkachev also noted that the Ministry of Agriculture had no plans to carry out grain intervention soon, since this could lead to the collapse of prices on the market. At the same time, as he said, the cost of production is already low now.

The government (commodity) interventions on the purchase and sale of grain have been held in Russia since 2001 in order to stabilize domestic grain prices. Together with a high yield, purchasing interventions allow to withdraw surplus off the market and stimulate the growth of prices, which allows the producers to avoid losses. Commodity interventions, on the contrary, are designed for the reduction of prices in lean years.


Author: Anna Dorozhkina


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