WHEAT INCENTIVE TO BE GIVEN

Ulaanbaatar, Mongolia /MONTSAME/ The entities and people who supplied a high quality wheat to domestic flour-mills and to the Fund of Promoting Farming Activity will receive MNT 100 thousand per ton. The size of incentive was set by the cabinet decision on Saturday. The 2012 state budget has 15 billion togrog for the incentive of MNT 50 thousand per ton, so an additional capital is required to be placed in the state budget of 2013. As the cabinet decided, the incentive will start in the first quarter of the next year. By a preliminary balance of this year, Mongolia is expected to harvest 468 tons of wheat, of whivh 47.3 thousand will be used for the 2013 sowing, 8.3 thousand tons will be reserved, 20 thousand tons will be used for fodder, seven will be distributed to spirit producing factories, and 386.4 thousand tons will be used for making flour. It has been calculated that the country will consume 240 thousand tons of flour, which requires 328 thousand tons of wheat, therefore the country is able to fully provide itself with flour, even to export 100 thousand tons abroad. Taking into account this positive situation, an obligation was given to the Minister of Industry and Agriculture to sell the wheat at domestic and foreign markets at ordinary prices. China and some central Asian countries have asked Mongolia to sell them the wheat. B.Khuder