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. Last Updated: 07/27/2016

Grain Subsidies Are Ordered

MOSCOW (MT) -- The Supreme Soviet passed a bill last week calling on government to find an extra 200 billion rubles to subsidize grain in the first quarter of next year. Parliament also sought to limit profit margins for bread and flour factories to 15 percent.


The subsidy will enable government purchasers to raise the present price of grain of 12, 000 rubles ($28. 85)


per ton without raising the price of bread. Bread now costs 31 to 48 rubles per kilo.


Legislators argue that the employees of the bread stores and in the flour and bread factories have received much higher salaries than the employees of grain producing farms. The state bakeries still hold a virtual monopoly on bread, and have been accused of raising their prices artificially.