February 8, 2011

Russia's grain harvest higher than government's estimate

Russia's grains harvest was no less than 3 million tonnes higher than the government's 60.9 million tonnes estimate, the president of the country's Grain Union, Arkady Zlochevsky was cited saying.

Farmers hid grain to report lower output statistics amid Russia's worst drought in at least 50 years, according to Zlochevsky. The government made compensation payments to farmers hit by the extreme weather.

Zlochevsky estimated grain consumption at 70 million tonnes in 2011, and said reaping an 85 million-tonne grains crop is a realistic prospect under normal weather conditions. Zlochevsky reiterated his union's estimate of carry-over stocks at 15 million tonnes by July 1.

The union submitted a proposal to the government to introduce quarterly quotas for grain exports this year, Zlochevsky was quoted as saying. The measure is aimed at distributing supplies evenly over a year, he said.