The government plans to extend subsidies for grain export from regions remote from sales until the end of the year
Subsidizing of transportation began at the end of 2017, this measure was valid until June 30, 2018.
"Subsidies will be provided within the budgetary assignments provided in the Federal law on the Federal budget for the corresponding financial year and planning period, and limits of the budgetary obligations brought in accordance with the established procedure to Federal Agency of railway transport as the recipient of the Federal budget funds", - says the explanatory note.
Based on the current situation of the grain market and the projected production of grain in 2018, the government proposes to exclude from the list of regions getting benefit from preferential export of grain, a number of subjects of the Central and Volga Federal districts. The list includes stations located within the boundaries of Orenburg, Kurgan, Novosibirsk, Omsk regions and Krasnoyarsk Krai - for the period from the date of entry into force of the resolution until 31 December 2018. Earlier, grain was exported on benefit from stations located within the boundaries of Voronezh, Kursk, Lipetsk, Orel, Tambov, Orenburg, Penza, Samara, Saratov, Ulyanovsk, Kurgan, Novosibirsk and Omsk regions.
According to the explanatory note, grain production in the regions remaining in the list this year is projected at 13.7 million tons with an average consumption of 9.3 million tons. Grain reserves in these regions, as of June 1, 2018, amounted to 4.1 million tons, which is 16.4% more than on the same date last year.
"Thus, the production of grain in 2018, taking into account the carry-over stocks will have a negative impact on the financial condition of agricultural producers, - the document says. - Remoteness from the main consumers leads to high transportation costs, which creates low demand and adversely affects the level of grain reserves, the surplus of which reduces the average prices in the region and, consequently, the income of agricultural producers".
The adoption of the draft resolution will release the capacity to store grain, reduce carry-over stocks, as well as to increase the level of purchase prices from farmers, believe the authors of the document.
The draft resolution was prepared by the Ministry of agriculture.
The note reminds that the Federal budget for 2018 provides 1 billion 999.9 million rubles to subsidize the transportation of grain from remote regions. According to the Federal Agency for railway transport, by August 31, 2018, the amount of subsidies paid to JSC "Russian Railways" for January-June amounted to 1 billion 721.6 million rubles, which is 86% of the envisaged. Thus, the rest amounted to 278.4 million rubles.
As reported, this year 2 million tons of grain was exported from remote regions at a reduced rate to sea ports, which allowed stabilizing the price situation in their grain markets.
The need to extend the subsidies for the transportation of grain from regions remote from sales was announced by President Vladimir Putin during his message to the Federal Assembly. "It is necessary to work out the extension of this measure for the next grain seasons, as well as to provide additional purchases in the regions of the Urals and Siberia, remote from the ports, and generally help those who are ready and want to be engaged in processing on the spot", said Putin in his message.
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