July 16, 2012

Russia's 2012 harvest forecast to remain at five-year average level

Russia's 2012 grain harvest will be lesser than the preliminary forecast but will remain within the average five-year level, Deputy Prime Minister Arkady Dvorkovich said Friday (July 13).

"Our grain forecast is lower than the initial ones, but nevertheless the overall outlook on grain production equals the average annual level of the last five years. It means we are somewhere in the middle, which is not bad given the drought in several regions of the country," Dvorkovich said.

The Agriculture Ministry initially forecasted the 2012 grain harvest at 94 million tonnes, flat on the year. The ministry then reduced the projected amount to 85 million tonnes, yet some experts say that the harvest may even be below 80 million tonnes.

Dvorkovich confirmed earlier that the authorities will not introduce a ban on grain exports.

"Furthermore, we have reserves in the Intervention Fund accumulated from previous years. The growth of consumption is quite steady in general and it allows exports of certain amounts, that is why there is no sense in limiting the export, but we are monitoring the situation on weekly basis," Dvorkovich said.