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Russia’s Grain Union urges obligatory insurance of grain crops
14.07.2010 11:59 "Agro Perspectiva" (Kyiv) —
Russia’s Grain Union has proposed to introduce the obligatory insurance of grain crops.
The union’s head, Arkady Zlochevsky, has expressed concern over the effective insurance mechanisms that can be used by farmers.
«Intricate treaties allow insurance companies to find loopholes» and refuse the payment of insurance compensations, he told a news conference on Monday adding that the legislation has no exact wording for the notion ‘lost crops’.
Zlochevsky recalled that this year the Agricultural Ministry forecasts that the grain output will reach 85 million tonnes.
He noted, the government’s measures to prevent the effects of the drought are «undoubtedly prompt and timely.»
The head of the Grain Union believes that the drought that affected several Russian regions making them to introduce an emergency regime will not result in bread prices hikes.
«The bread prices have never depended on grain prices,» Zlochevsky said.
Two years ago the grain price totalled around 24 percent of the average price of bread. Since then the grain price tumbled two and a half times, but the price of bread remained unchanged.
The emergency regime over heavy drought was announced in fourteen Russian regions.
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