April 18, 2011
 

Russian agricultural producers appeal to remove grain export prohibition

Russian agricultural producers from the southern regions submitted an open letter to Dmitry Medvedev, President of the Russian Federation, to apply for the removal of the grain export embargo in the nearest future.

According to participants of the agro-industrial complex, imposition of the export ban for grains did not result in the expected outcome. According to domestic consumers, in spite of the export embargo, prices for food products still continue growing.

Agrarians consider that in the medium-term prospect, the grain embargo will seriously discredit opportunities of agrarian production volumes, and principles of formation of the state grain reserve.

The general grain stocks of the southern regions of Russia total 11 million tonnes. Grain elevators are overstocked, which causes additional expenditures for grain storage, according to the letter. During the recent month, grain prices on the domestic market continue falling, and almost reached the prime cost level of RUB4,000/tonne (US$142.14). At the same time, the prices on the world market exceed the level by two to three times.

The possible cancellation of the grain export ban in September-October, according to announcement of Elena Skrynnik, Head of the Ministry of Agriculture, will not allow to agrarians to sell grain volumes and prepare for the harvesting campaign-2011. According to the open letter, September is the main period for the provision of sowing works, which forms the basis for the future harvest. Due to the absence of financial sources, agrarians will not be able to realise the sowing works.

The authorities should acknowledge that further prolongation of the grain export embargo is the mistake, added the letter. Agrarians ask the authorities to cancel the export ban to date without waiting till the beginning of the new harvesting season.