You're reading: Crimean authorities plan to build state grain elevator

The Crimean government will create a company named "Crimean Grain Elevator" so as to have influence on formation of prices of main sorts of bread in Crimea.

During a scheduled meeting on April 27, the Council of Ministries of Crimea approved a respective instruction of the Supreme Council of Crimea.

In an interview with reporters after the meeting, Crimean Prime Minister Vasyl Dzharty said: "We want to construct a elevator for the republic for processing the grain of farming companies, and part of the enterprise’s income could be spent on processing of grain for Crimean bakeries for the production of inexpensive sorts of bread, which would be sold at much lower prices than today."

While commenting on the necessity to create the Crimean republican enterprise, Dzharty noted that today most elevators on the territory of Crimea do not belong to the state, due to which it is impossible to influence their policy of production of inexpensive bread.

During the meeting of the Council of Ministers, Crimean Agriculture Minister Valeriy Kravets informed that today more than 900,000 tonnes of grain is harvested in Crimea, and it is planned to increase this amount to 2.5 million tonnes by 2015.

The minister added that there are 22 grain elevators in Crimea today, and only five of them are in state ownership. Those five elevators are governed from Kyiv, and the Crimean authorities have no influence on them. All other grain elevators are in private ownership.

Kravets noted that under the social and economic development plan of Crimea running until 2020 it was decided to create a Crimean state enterprise named "Crimean Grain Elevator," which would be engaged in grain storage and processing. In addition, it will be used for social programs.

At the first stage it is planned that the capacity of the state enterprise will be 40,000 tonnes of grain, and this will later be increased to 250,000 tonnes, as demand during the year in Crimea is 242,000 tonnes of grain.