February 22, 2012

Russia's 2011-12 grain exports may reach 25 million tonnes

Russia may export 25 million tonnes of grain in 2011-12, Russian Agriculture Minister Yelena Skrynnik said Tuesday (Feb 21).

Ninety-four million tonnes of grain was harvested in Russia last year.

"That amount is sufficient to provide for domestic requirements and for exporting up to 25 million tonnes of grain," Interfax news agency quoted Skrynnik as saying.

The country exported 19.8 million tonnes of grain since the start of crop year on July 1, Skrynnik added.

This was just 50,000 tonnes less than the estimate of the Institute for Agricultural Market Studies (IKAR) published on Monday.

The institute said total grain exports from July 1, 2011 - February 12, 2012 amounted to 19.85 million tonnes, but the pace of exports dropped dramatically in the first two weeks of February.

On July 1, 2011 Russia lifted a ban on grain exports, which had been in force since August 15, 2010 to curb rising domestic prices after the worst drought on record.

The Russian government was surprised by record levels of exports after the ban was lifted. Prime Minister Vladimir Putin in October warned traders against signing "excessive" export contracts and said Russia could export no more than 25 million tonnes in the year to July 1, 2012.

But in early February, Russia's government raised the grain export forecast for 2011-12 by 12.5% to 27 million tonnes and said it saw no need for grain export restrictions.

Speaking on Tuesday, Skrynnik declined to comment on possible export restrictions after April.