MOSCOW, August 23 (RIA Novosti) - Russia's state grain trader United Grain Company (UGC) has started domestic grain supplies with a delivery to a flour mill in a drought-hit regions in central Russia, UGC said on Monday.

"The situation we are currently facing on the Russian grain market means we must organize grain supplies to the most distressed consumers with the utmost efficiency. One of UGC's current tasks is to eliminate regional imbalances between grain-producing and grain-refining regions," UGC Chief Executive Officer Sergei Levin said.

The government has recommended UGC work out a grain supply scheme to meat and poultry producers in the country's most drought-hit regions. Russia is striving to preserve dairy cattle stocks in conditions of a lack of feed grain after the worst ever drought and heat has destroyed nearly a quarter of the harvest.