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Russian agrarians called on the president to help with the problem of the collapse of grain prices

The Association of Peasant (Farmer) Farms and Agricultural Cooperatives of Russia (AKKOR), against the background of the collapse of grain prices in the domestic market, appealed to the President of the country with a request to increase the volume of purchases to the intervention fund."In order to maintain the planned growth rates of production, we ask you to facilitate the launch of large-scale intervention auctions, as well as the abolition of export duties on grain crops," the appeal to the President of the Russian Federation says (quoted by RIA Novosti).

Prices for the 2022 harvest are the main issue of concern to farmers today. AKOR notes that farmers expect a good harvest, at the same time, there has been a collapse in grain prices on the market.

"With a significant increase in costs, the prevailing prices do not cover the costs incurred," the appeal says.

"In conditions when the cost of grain becomes lower than its cost price, farmers may be on the verge of bankruptcy. In the conditions of severe sanctions pressure, there is a need to take urgent measures that would prevent the bankruptcy of any peasant (farm) economy," the ACCOR of the Krasnodar Territory is confident.

In order to increase the profitability of medium and small forms of management, the association proposes to fix for farmers of the Krasnodar Territory the lower bar of the selling price for cereals and other agricultural crops, for example, for wheat of the 4th class - not less than 15 rubles per kilogram. Also, industry participants proposed to create a state grain company, which, in the event of a significant drop in prices on the domestic market, should purchase products from agricultural producers at the lowest acceptable price. If the price increases, for example, to 18-20 rubles per kilogram, farmers should have the right to buy their crops from this company at the previously designated fixed price.

The flexible export duty on wheat, corn and barley operates under the grain damper mechanism. To calculate the duties, which have been converted to ruble values since July 2022, data on the price of export contracts registered on the stock exchange and the arithmetic average dollar-ruble exchange rate set by the Central Bank five working days before the settlement date are used in Russia.

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Ekaterina Levina

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