Russia, looking to replenish state reserves after last year's drought, aims to buy 5 million tonnes of grain this year, Agriculture Minister Nikolai Fyodorov said on Friday. Though the harvest is expected to rebound after drought cut the 2012 wheat crop by a third, the government's purchase plans could eat into the country's exportable surplus.
"Our aim is to have about 5 million tonnes (of grain) in our interventions fund," Fyodorov told reporters on Friday after his report to State Duma. State stocks are expected to decline to 300,000 tonnes of grain by July, from 4.8 million tonnes a year ago, and officials have said that the country intends to buy mainly wheat and maize (corn) on the domestic market between August and October.
If the government ends up competing with exporters for grain, it could jeopardise Russia's traditional role as one of the cheapest suppliers on the world market, typically attracting interest from price-sensitive buyers in north Africa and the Middle East.
Fyodorov also told reporters that the country kept its 2013 grain harvest target unchanged at 95 million tonnes, with the wheat crop seen at between 40 million and 50 million tonnes. Last year's drought cut Russia's grain harvest to 71 million tonnes from 94 million tonnes in 2011. The wheat harvest fell 33 percent to 38 million tonnes. Scenarios for this year's crop and restocking plan are due to be discussed by Deputy Prime Minister Arkady Dvorkovich and other officials on Monday.
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