UGC is working on increasing grain reserves in the Intervention Fund to 6 million tons
The United grain company (UGC) together with the Ministry of Agriculture of the Russian Federation is working on a new concept for selecting grain companies to increase control over the Federal Intervention Fund of Grain (FIFG), in addition, the issue of increasing grain reserves in the Fund to 6 million tons is being discussed, RIA Novosti reported in the press service of the "UGC".
"At the moment, JSC "UGC" together with the Ministry of Agriculture of the Russian Federation is working on a new concept for selecting grain companies to increase control over the FIFG and ensure the interests of grain market participants during interventions. In addition, the issue of increasing the FIFG grain reserves to 6 million tons is on the agenda. This volume roughly corresponds to the monthly consumption of grain in Russia," - the "UGC" said.
Thus, the company continued, it will be possible to insure against a repeat of the scenarios of 2010 and 2012, when grain production was 61 million and 70.9 million tons, and now the annual consumption is about 76 million tons. The "UGC" estimates that about half of the reserves will be used to support the milling industry, which has a monthly demand of 1.1 million tons of grain.
"In other words, we strive to meet the three-month demand of the entire country for grain for bread production. This issue is also being worked out by JSC "UGC" together with the Ministry of agriculture of Russia," the press service added.
"UGC" is the state agent for grain interventions in Russia. The company points out that its experience in conducting interventions shows that it is not the Fund itself that requires reform or transformation, but the system of grain companies, whose selection criteria were very soft when creating the Fund.
"This has led to the fact that today market participants are faced with unfair actions of some of them. In particular, these are unjustified overestimations of prices for shipment, technical difficulties in the shipment of grain, and so on," - the "UGC" said. According to the Ministry of agriculture of the Russian Federation, the volume of grain of the Federal Intervention Fund as of May 22 is 869,3 thousand tons in the amount of 8,746 billion rubles.
Source
"At the moment, JSC "UGC" together with the Ministry of Agriculture of the Russian Federation is working on a new concept for selecting grain companies to increase control over the FIFG and ensure the interests of grain market participants during interventions. In addition, the issue of increasing the FIFG grain reserves to 6 million tons is on the agenda. This volume roughly corresponds to the monthly consumption of grain in Russia," - the "UGC" said.
Thus, the company continued, it will be possible to insure against a repeat of the scenarios of 2010 and 2012, when grain production was 61 million and 70.9 million tons, and now the annual consumption is about 76 million tons. The "UGC" estimates that about half of the reserves will be used to support the milling industry, which has a monthly demand of 1.1 million tons of grain.
"In other words, we strive to meet the three-month demand of the entire country for grain for bread production. This issue is also being worked out by JSC "UGC" together with the Ministry of agriculture of Russia," the press service added.
"UGC" is the state agent for grain interventions in Russia. The company points out that its experience in conducting interventions shows that it is not the Fund itself that requires reform or transformation, but the system of grain companies, whose selection criteria were very soft when creating the Fund.
"This has led to the fact that today market participants are faced with unfair actions of some of them. In particular, these are unjustified overestimations of prices for shipment, technical difficulties in the shipment of grain, and so on," - the "UGC" said. According to the Ministry of agriculture of the Russian Federation, the volume of grain of the Federal Intervention Fund as of May 22 is 869,3 thousand tons in the amount of 8,746 billion rubles.
Source