By Aleksandras Budrys
MOSCOW, March 5 (Reuters) - Russian banks have begun
disbursing a record 120 billion rouble ($3.3 billion) loan
package to crisis-hit farmers in a bid to secure another bumper
crop this year, a senior government minister said on Thursday.
First Deputy Prime Minister Viktor Zubkov, who oversees the
agricultural sector, said state-owned Russian Agricultural Bank
would supply 60 billion roubles and top Russian lender Sberbank
55 billion roubles for the spring sowing campaign.
Four other banks -- VTB, state bank VEB, Gazprombank and MDM
-- would supply the remainder, he said.
"The financing has already started," Zubkov told a news
briefing after a government meeting. "Farmers will receive the
whole amount of 120 billion roubles in March, April and May."
Russia gathered 108.1 million tonnes of grain in 2008, its
biggest crop since 1990. Zubkov said the government was aiming
to ease tough credit conditions for farmers as the country aimed
for another large harvest this year.
"Preparations for spring sowing are proceeding in an
organised manner and everything is being done to guarantee a
good crop," said Zubkov, who preceded Vladimir Putin as prime
minister and once managed a collective farm in northwest Russia.
Zubkov declined to give a grain crop forecast for this year.
He said he expects the total area sown with grains for the 2009
harvest to be 47.6 million hectares, unchanged from last year.
Agricultural analysts SovEcon are forecasting a 2009 Russian
grain crop of between 87 million and 96 million tonnes. Industry
lobby, the Russian Grain Union, has said the harvest could again
reach 100 million tonnes this year.
Analysts and producers have said Russia would encounter
problems managing another big crop due to a shortage of storage
space and limited export capacity via railways and ports.
SOLVING EXPORT LIMITS
Zubkov said the government was trying to solve problems
related to export capacity.
"We have exported over 14 million tonnes this season and may
export another 2.5 million tonnes by July," he said, adding the
government might also buy 2.5 million tonnes of grain on top of
7.5 million tonnes already bought via intervention tenders.
"I have asked the Agriculture Ministry to provide storage
space needed for the new-crop grain, and for it to be available
before the end of June, when harvesting starts in the south."
Zubkov said Russia had storage space available in the north
of the country, in the Volga region, in the Urals and Siberia,
adding: "We have sufficient money to guarantee the transfer."
Zubkov said the government had persuaded fertiliser
suppliers to increase sales at lower prices than last year.
"Prices are currently somehow lower than last year, and
volumes bought by farmers have risen notably," he said.
Fuel prices, however, had risen in the last two months. He
said Prime Minister Putin had ordered oil companies to lower
prices to levels seen at the start of January.
"If this is done, and I believe it will be done, we will not
need additional funding of fuel acquisition by farmers."
The government has also set aside 25 billion roubles ($690.2
million) for the acquisition of agricultural machinery from
domestic producers for subsequent lease to farmers, Zubkov said.
This will permit farmers to buy more than 6,000 tractors,
2,000 combine harvesters and 6,000 trucks, he said.
The government, in a statement prepared for Thursday's
meeting, said farmers last year bought 23,800 tractors, 40
percent more than in 2007, and 9,600 combine harvesters, 60
percent more than a year earlier.
But after the end of the 2008 harvest campaign, about 70
percent of all agricultural machinery needed repairs, it said.
(Editing by Robin Paxton and Peter Blackburn)
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