TITLE

Foreign Assistance: Donation of U.S. Planting Seed to Russia in 1999 Had Weaknesses: NSIAD-00-91

PUB. DATE

March 2000

SOURCE

GAO Reports;3/9/2000, p1

SOURCE TYPE

Government Document

DOC. TYPE

Article

ABSTRACT

The United States donated 15,000 metric tons of planting seed--mainly corn and pea seed--to Russia in 1999. Under the Food for Progress agreement, the donated seeds were to be sold in Russia at market prices and the proceeds deposited in a special account and then disbursed to Russian seed institutes and a rural credit cooperative. Under pressure to meet planting dates in Russia, Agriculture Department officials bought the seed through a noncompetitive, sole-source contract for $21.7 million. This decision forced the United States to donate the seed to Russia rather than finance its sale with a concessional loan. Seed distribution in Russia did not follow the original plans, and reasons for changes were not fully documented. The regional distribution of some seeds was not confirmed, and there is conflicting information as to what happened to these seeds. Some seed arrived in the regions too late to be planted, and Russian producers complained about a lack of technical information on food types and about the delivery of seed that was inappropriate for local growing conditions. The sale of the donated seed to regional wholesalers and government agencies in Russia raised about $2.6 million--about one-eighth of what was paid to the sole source contractors that had shipped the seed to Russian ports.

ACCESSION #

18208078

Tags: SEEDS;  INTERNATIONAL economic assistance;  COOPERATIVE banks & banking;  GOVERNMENT agencies

 

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