Agriculture Minister Alexey Gordeev, left, and Prime Minister Mikhail Fradkov
Photo: Michail Galustov
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Food Tune Changed for Better
Yesterday was the deadline for Prime Minister Mikhail Fradkov to choose methods to be applied to blow out the surge in food prices, first of all in prices for grain and sugar. But the grain prices are lowering even without any moves of the cabinet but on improved harvest forecast of Russia’s Hydrometeorological Service, Roshydromet. As to Fradkov, he is on leave now, same as Agriculture Minister Alexey Gordeev. Really, the actions of government are a bit delayed; the agrarian sector has fueled inflation already, which is forecasted at 1 percent for July.
Russia’s Grain Union President Arkady Zlachevsky said the advice of his organization to the cabinet was to avoid making haste. “We don’t think the grain interventions are needed now - the new harvest results should be first summed up, and any decisions are to be taken only after it,” Zlachevsky explained.
Roshydromet that is the most authoritative state institution evaluating harvesting opportunities has upgraded its outlook with regard to the favorable weather conditions, said Nikolay Demianov, who is the marketing director at International Grain Company. The harvest is estimated at 44.5 million tons to 48.5 million tons vs. the previous forecast of 43 million tons to 47 million tons.
In June of 2007, Russian Statistics Service said, the prices for sugar accounted for 84.2 percent of last year’s prices, having dropped 4.5 percent vs. December of 2006. No decision on fruit/vegetable imports has been taken so far. The prices went up 16.2 percent on year in June, but no information about July prices is available yet.
Meanwhile, the June-July growth in agrarian prices has affected inflation already. According to Reuters forecast, the inflation was 1 percent in June (0.7 percent in July) with the clear impact of higher prices for bread driven up by increased grain prices.
www.kommersant.com
All the Article in Russian as of Aug. 01, 2007
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