June 12, 2007

Russia plans to boost grain exports by 15 million tonnes in five years

Russia mulls increasing its grain exports to 15 million tonnes over the next five years, according to the government's 2008 to 2012 draft programme on the development of agriculture and the regulation of the markets for agricultural products and raw materials.

The Agriculture Ministry in accordance with the law on the development of agriculture said Russia will export 13 million tonnes of grain in 2007 compared to 11.2 million tonnes in 2006.

Following the programme's objectives, Russian grain exports will grow to 13.5 million tonnes in 2008, 14 million tonnes in 2009, 14.5 million tonnes in 2010, 15 million tonnes in 2011 and 15 million tonnes in 2012.

Sales of grain will increase to 43.1 million tonnes in 2007 and 50 million tonnes in 2012 from 40.5 million tonnes in 2006.

Federal budget expenditures on grain market interventions could total 1.3 billion (US$50.02 million) Russian roubles in 2008 and 1.43 billion roubles (US$55.03 million) in 2012.

The Agriculture Ministry's initial projections for the country's gross grain harvest this year is from 76 million to 79 million tonnes compared to 78.2 million tonnes in 2006.

The ministry projects agriculture production will grow 2 percent in 2007, 3.8 percent in 2008 and 4.1 percent in 2010 before sliding to 4.1 percent in 2011 and rebounding to 4 percent in 2012.

Farming output rose 2.8 percent in 2006 as against 2005.