Russia says rail subsidies best way to aid farmers, mulls state wheat buying

Logistics subsidies for farmers in remote parts of Russia are the solution to low prices, president Vladimir Putin has told journalists.

Speaking in his annual end-of-year press event, Putin reaffirmed a previous announcement that the government would be zeroing railway tariffs in order to get this year’s mammoth wheat crop out of Russia and on to the export market.

“Without a doubt, grain producers need support,” Putin said. “What we agreed with the government is subsiding rail transport… It should work.”

When asked if it was appropriate to reconsider a return to state planning in the agrarian economy, Putin responded he would not rule out a return to state intervention purchases, even though the government was against the idea.

How to improve infrastructure in Russia to export its huge bumper crop of wheat has been a main topic among traders this year, as Russian grain exports eats into US market share.