Russia Buys Up to 3 Million Tonnes of Grain for State Reserve

The Russian government has announced plans to purchase 3 million tonnes of grain for its state reserve fund. The grain will be wheat and rye, and the actual volumes of annual purchases will depend on market conditions and available funding.

Currently, the Russian Federation's state reserve fund holds around 3.7 million tonnes of grain, with over 3.6 million tonnes being food-grade wheat. These stocks are stored at 147 specialized facilities across 22 regions.

The mechanism for intervention purchases involves the state buying grain from the market to support prices and producers during periods of oversupply or weak sales. This is a standard practice in Russia, with previous purchases made in the first half of 2024.