Bread-bakers in Kirov Region immune to growth of crops prices

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Bread-baking companies in Kirov Region will be able to remain immune to growth of crops prices. They will take soft loans to purchase crops under condition of the budget interest rate subsidy, Vladimir Ogorodov, Deputy Head of the Regional Department for Agriculture and Food informed REGNUM.

According to him, in the region, an agreement between the regional government and distributors and manufacturers of socially important kinds of foodstuffs is still in force; it envisages limiting the price markup for those kinds of goods by 10%. Eleven commodity items are listed in the category; they are socially important sorts of bread and diary products.

At present time, bakers will be provided soft loans to purchase crops and flour, so they can form reserves of crops and thus to insure against possible spike in corps prices.

According to a decree of the Russian government of December 29, 2007, funds are sent from the federal budget to the regions to subsidy the interest rate of such loans in order to encourage flour and bread producers to make them apply for bank loans.

In Kirov Region, the subsidies within frameworks of the decree for 2008 are limited in the amount of 15 mln rubles.