"The point at issue are 1,600,000 tons of grain," Russian Agriculture Minister Aleksei Gordeyev said at a Cabinet meeting when the president asked to update him on the measures the Cabinet would take to reduce bread prices.
"We expect the grain interventions to revive the market and help cut grain prices by 10%," said Mr Gordeyev.
He said grain prices would be 25% lower than on the market.
The state will be selling such grain to milling facilities via the stock exchange, rather than directly to baking facilities, added the deputy prime minister.
"We will focus, above all, on the regions with grain shortages," said Mr Gordeyev.
The minister said it was possible to take the bread and other bakery products price advance under complete control of the Cabinet as price advance rate must not exceed inflation rate counted in the budget.
