The cost of grain this fall in the southern regions of Russia has dropped by half, they write “News»with reference to the Association of Peasant (Farm) Households and Agricultural Cooperatives (AKKOR). The most difficult situation developed in the Krasnodar Territory and Rostov Region, where in the fall the authorities were forced to introduce a state of emergency due to problems with grain sales, AKKOR said. Farmers cannot sell their crops, which resellers take advantage of by sharply reducing purchase prices. As a result, with the cost of third-class wheat at 11–13 thousand rubles per ton, it is offered to farmers for 5 thousand.
“Such buying of grain for next to nothing is observed in the Rostov region, Krasnodar region, and it also occurs throughout almost the entire North Caucasus. They want to take almost everything for free, and they are buying not only wheat, but also barley and peas,” said the head of the association in the Rostov region, Alexei Zhdanov.
According to him, there is still no extension of loans promised to farmers, and procurement intervention has not begun. This threatens the sowing of winter crops, the area of which in southern Russia, according to an industry representative, could be reduced by 30%.
“In order to sow areas, you need to buy expensive diesel fuel, fertilizers, seeds, which farmers simply do not have money for,” Zhdanov explained.
AKKOR Vice President Olga Bashmachnikova also noted that the situation remains difficult.
“Indeed, we can say that grain prices in the south of Russia have fallen by half over the year. We have information that they are offering to sell it at 4 thousand rubles per ton. This is because the market is standing still and there are no sales,” she explained.
The measures that are currently being developed by the authorities can collectively move the problem forward. According to her, these include subsidies per hectare and for railway transportation, prolongation of financial obligations.
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Source: https://www.zerno.ru/node/34523