April 17, 2012

Russian grain harvest to remain flat on year

Russia's grain harvest could stay constant on year at 94 million tonnes in 2012, First Deputy Prime Minister Viktor Zubkov said on April 15 in an interview.

"The fact that spring came so late to Russia made several agricultural companies adjust their plans on how to effectively conduct what will end up being a shortened spring sowing season," Zubkov said.

Russian Grain Union President Arkady Zlochevsky said in early April that if the weather is favourable, Russia's grain harvest could amount to 100 million tonnes in 2012.

The area used for spring crops is slated to increase 0.6% on the year to 300,000 hectares in 2012.

In February, the Agriculture Ministry raised the grain export forecast to 27-28 million tonnes from 25 million tonnes for 2012.

State-owned Russian Agricultural Bank and top lender Sberbank plan to grant RUB64 billion (US$2.16 billion) and RUB46 billion (US$1.55 billion) in loans, respectively, to agriculture companies for spring sowing purposes. The banks have already given about RUB24 billion (US$811 million) in loans.