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Russia orders private companies to buy grain from Siberia

Staff Writer | November 21, 2017
The Russian Agriculture Ministry has ordered several companies, including private, to buy and transport grain from Siberia, Kommersant reported citing a protocol of a ministry meeting devoted to the situation on the Siberian grain market.
Siberia grain
Food trade   The Siberian grain market
The ministry ordered United Grain Company (UGC) to act as an operator of purchase 200,000 tonnes of grain in the Novosibirsk Region until December 1; grain trader Zerno-Trade must buy grain in the Omsk Region under coordination with the local government; Rusagrotrans must ensure provision of rail cars and grain wagons for transportation of 90,000–100,000 tonnes of grain from Siberia per month, Kommersant reported.

A UGC representative said that the company will buy fourth-class grain for 6,200 rubles per tonne in order to export it through the port of Novorossiysk. The company is now developing a mechanism to fulfill the order, and is discussing parameters of deals.

Zerno-Trade declined to comment, while a Rusagrotrans representative told Kommersant that the company is aware of the results of the meeting.

A representative of the Agriculture Ministry was unable to clarify why the ministry thinks that it is acceptable for the government to manage operation of private companies on the grain market, the business daily reported.