The reserve grain fund will amount to 530 thousand tons in Bashkortostan
About 530 thousand tons of grain will be accumulated in the Republican grain fund, the press-service of the Ministry of agriculture RB reports. For that it is planned to allocate 1,5 billion rubles of borrowed means under the guarantees of the budget RB.
It should be reminded that the President RB Rustem Khamitov made the decision to open the Republican reserve grain fund with the purpose to support the Republican agrarians in the period of grain price-cutting. In such situation the opening of the grain fund should become an efficient supporting mechanism for local villagers. The agrarians may receive money for wheat, rye and barley through the fund.
The coordination on formation of the fund is imposed on the Ministry of agriculture RB and the volumes of grain purchases will be following: in 100 thousand tons of rye, wheat and barley of the fifth class, 200 thousand tons of wheat of the fourth class, 30 thousand tons of wheat of the third class – 530 thousand tons in total complexity.
The mechanism of pledge deals presumes determination of the grain operator in the person of the state unitary enterprise “BASHAGROPRODUCT”, opening of the credit line through the Bashkir division of the Russian Savings Bank and conclusion of the contracts of debt and pledge and the agency contracts with the agricultural producers. The agrarians have to deliver the grain for the operator at fixed prices for a definite period of time (till March 1, 2012) with the right of the back redemption before the end of this period of time. If the farming fails to declare its rights by the time set, the operator may leave the grain at its disposal.
Holding of the pledge interventions gives the Republican agrarians a chance to receive money quickly, to remove cheap grain from the market, to form large lots of grain for future sales, to choose the time of grain sales self-dependently, taking the market conjuncture into account, and to sell this grain to the grain elevators with profit.
This decision is profitable for grain elevators too even if all of them keep the grain till December 1 free, taking money only for grain drying and acceptance. At that the prices are fixed lower than in the neighboring regions. The most reliable grain elevators in the region will be chosen as the Republican grain keepers.