Russia: Grain export ban may be prolonged by additional 6 months after July, 1

To date the Government of the Russian Federation examines the issue of the possible prolongation of the export ban of grains from Russia for additional 6-month term, Viktor Zubkov, First Vice Prime Minister, was quoted as saying by AgriMarket.Info on March, 2.

The authorities still did not make any decision on the issue, and plan to analyze the situation on the grain market this month.

As a reminder, Russia imposed grain export ban, acting from August 15, 2010, till July 1, 2011. Last year, grain production volumes in the country totalled 60.9 mln tonnes only, as opposed to 97 mln tonnes in the previous year. In the current year, the Ministry of Agriculture forecasts grain harvest at the level of 85 mln tonnes, at the same time the domestic requirements in food and forage are estimated at 70-75 mln tonnes. Previously Andrei Klepach, Deputy Minister of Economy, said that Russia will possibly cancel the grain export ban, if grain production volume totals 80-85 mln tonnes.

Russian Grain Union forecasts grain production at the level of 82-86 mln tonnes and carry-over stocks – 14-15 mln tonnes. At the end of February, Alexander Korbut, Vice-President of Russian Grain Union, declared the Government will make the final decision on grain exports in October 2011. And before the complete cancellation of the limitations, the Government may impose grain export quotas for a 3-month term, he said. The Grain Union sent the corresponding proposal to the Ministry of Agriculture.

04 March, 2011