OREANDA-NEWS. November 10, 2011. As part of monitoring prices for the main food products, the Federal Antimonopoly Service (FAS Russia) together with its regional bodies completed an interim analysis of wholesale buckwheat pricing and concluded that there are no objective reasons for increasing retail prices for buckwheat, reported the press-centre of FAS Russia.

FAS analysed the situation with buckwheat prices jointly with its offices in the regions that grow most buckwheat – the Altai Krai, the Orenburg region, the Republics of Tatarstan and Bashkortostan.

The conclusion is based on the following facts:

– According to the Ministry of Agriculture, in 2011 production of buckwheat grain in the Russian Federation has exceeded the figures for 2010. By 12th November 2011 664,800 tons of buckwheat have been milled - nearly twice as much as in 2010 and over twice as much as in 2009;

– According to FAS regional offices, information submitted by economic entities shows considerable stock of buckwheat grain in warehouses of agricultural producers. In September 2011, wholesale prices for buckwheat decreased by 2.5- 3 times in comparison with January 2011;

– There are many agricultural producers and wholesale processers on the buckwheat market in the Russian Federation that do not have dominant position on the market of production and wholesale sales of buckwheat within the boundaries of the Russian Federation as well as within the boundaries of the constituent territories of the Russian Federation;

– FAS revealed the incidents of restricting grain sales by agricultural producers anticipating increase of demand and accordingly growth of selling prices, which resulted in increase of prices on the market of buckwheat grain in October 2011 and, as a consequence, increase of prices for buckwheat groats.

“In our opinion, at the moment there are no objective reasons for increasing wholesale buckwheat prices (groats). Producers and wholesalers keep considerable stocks of buckwheat in their warehouses, which is probably related to expected tenders for purchasing buckwheat. FAS, jointly with its regional offices, will continue analyzing the situation on the market of production, wholesale and retail sales of buckwheat, and should any signs of violations of the Law on Protection of Competition be revealed, antimonopoly measures will be applied”, explained the Head of FAS Department for Control over Chemical Industry and Agroindustrial Complex, Mr. Teimuraz Kharitonashvili.