December 9 2004, 12:03

About 40 pc of grain in the south of Russia goes to "shadow market" - regional official

Shadow grain market in the south of Russia represents about 40 percent of total grain production in the area, Deputy Plenipotentiary Representative of President in Yuzny (Southern) Federal District of Russian Federation Sergey Viazalov has said to a collegium of power authorities in Rostov-on-Don.

According to Viazalov, the situation was caused by "several mistakes, made by the state, in the field of grain policy".

"None of the branches of economy but agriculture has received such a support on the federal level… Today we are facing the monopoly, ruled by Agriculture Ministry", he said.

"Analysis of the situation shows that credits in Rosselkhozbank (Russian Agricultural Bank) can be obtained only "through the back door". Instead of a leasing company, obliged to offer absolutely preferential conditions of crediting farm equipment purchases, we have a monopolist. It is also not easy to acquire subsidised rates", he said.

According to him, situation in the agricultural sector could be changed through exchange grain trade.