Putin has ordered the purchase of grain from farmers amid export problems through Russian ports
Russian President Vladimir Putin has instructed the government to begin purchasing grain from Russian farmers for the state intervention fund. This comes amid logistical challenges and a decline in export demand for Russian grain.
“The proposals you’ve made here—for example, providing assistance to agricultural producers in selling grain, specifically through purchases for the reserve—are absolutely correct, and I fully support them. I have already given the government this instruction,” Putin said.
Earlier, Oksana Lut, head of the Russian Ministry of Agriculture, stated that as part of its support for farmers, the state could purchase up to 1–3 million metric tons of grain. According to the Russian Ministry of Agriculture, the approved volume of planned government purchases for 2026–2027 amounts to up to 3 million metric tons of third- and fourth-grade wheat and rye, although the actual volume will depend on market conditions and available funding.
Gennady Zyuganov, leader of the Communist Party of the Russian Federation (CPRF), stated that without urgent grain purchases from farmers at a “normal” price, next year’s planting season and harvest could be at risk.
The mechanism for state procurement and commodity interventions in Russia has been in place since 2001. When grain supply exceeds demand, the state purchases the produce for the intervention fund, thereby supporting prices for producers. Conversely, in the event of a shortage, grain from state reserves may be sold on the market.
According to data from the Russian Ministry of Agriculture, the state grain fund currently holds about 3.7 million metric tons. The fund’s operator, United Grain Company, is already selecting grain elevators for storage in 14 regions of Russia.
Following the Russian government’s decision, problems have arisen with grain sales and export logistics. The Russian side attributes the need to support farmers to a decline in export demand and logistical challenges.
The article states that since July, the Ukrainian Armed Forces have been striking Russian ports in the Azov and Black Seas, through which Russia exports significant volumes of grain. According to this information, the attacks damaged port infrastructure and vessels.
According to an estimate by “Sovekon” cited by the source, Russian grain exports in August and September fell to their lowest levels in the past 16 years and were one-third of what they were a year earlier. The Russian Grain Union, for its part, estimated that wheat exports had fallen fourfold—to 347,000 metric tons per week.
Ukraine had previously advocated for a ceasefire in the Black Sea, which could allow for the resumption of full-scale agricultural exports. However, according to Taras Vysotsky, Ukraine’s Minister of Agrarian Policy and Food, Russia has rejected all proposals for such a ceasefire.
“Unfortunately, it’s hard to imagine any positive solutions to this issue in the coming months,” Vysotsky said.
He noted that Ukraine had received information from its partners that Russia had rejected all proposed options for a ceasefire in the Black Sea.
Thus, Russia is simultaneously preparing for state grain purchases amid problems with its sale and export, while negotiations on restoring safe maritime trade remain fruitless.
Putin announced the relevant directive on September 28 during a meeting with political party leaders at the Kremlin.
As a reminder, Russia has rejected all proposals for a grain deal that could allow for the resumption of agricultural exports via the Black Sea. Ukraine’s Minister of Agrarian Policy, Taras Vysotsky, told Bloomberg about this. According to him, Kyiv received this information from countries that had attempted to establish a dialogue with Moscow.
Currently, Ukraine and Russia are virtually tied in terms of grain export volumes in absolute terms.
