Russia spends big to support grain prices

MOSCOW, Aug. 29 (UPI) -- The Kremlin said Monday it was using $217.9 million to support the price of Russian grains.

The government initiated the high-price grain intervention because grain prices "plummeted," Novosti said.

By "removing" excess grain supply the state stabilizes market prices to support domestic grain producers and improve the market situation.

Part of the reason for falling grain prices is increasing global prosperity is increasing people's consumption of meats, with the result that their consumption of grains is down.

Further, several nations are posting big increases in their harvests. Ukraine, for example, is returning to its status as the "breadbasket" of Europe. Also, India and China are boosting their grain output.