Russia aims new markets for grains

This year's grain harvest in Russia is sufficient not only to meet the country's demands but also the world's requirements, says the head of Russia's Grain Union, Arkady Zlochevsky.

In 2008, Russia harvested a record one hundred million tonnes of grain but this year it will be about 85 million tonnes. Moreover, there are reserves left from last year's harvest, hence the possibility of exporting grain. However, it is not so easy to realize this on foreign markets owing to several reasons, said Zlochevsky. Zlochevsky says the difficulties are linked with the fact that grain-consuming nations have cut their demand by about 9 million tonnes which is a huge reduction. But Russia's capability for exporting grain is very high, he said and task before the grain exporters is to find new markets such as Southeast Asia. 

Unfortunately, exporting to the region is under question owing to the limited capacity of transport and logistic infrastructure in the Russian Far East and it is impossible to unload large amount of grain. Last year, Russia exported over 20 million tonnes of grain, but this amount will not be exceeded in 2009 as much depends on the government's measures supporting export. Russia's Grain Union is holding consultations with relevant government structures and insists on the need for introducing export subsidies, subsidizing export credits used in exports. This is a complex of measures, and the Foreign Ministry and Trade missions should be involved in promoting Russian exports in foreign markets and the development of new markets.

Russia's Grain Union plans to hold an international conference in one of the Southeast Asian countries in February next year to promote Russian grain to the markets of the region.