September 2, 2009
Russia urged to provide more subsidies for grain exports
The Russian government should provide more export subsidies to help the grain export market, according to the Russian Grain Union.
Russia should increase its export subsidy assistance, which was previously offered at US$700 million, said Arcadiy Zlochevsky, president of the union.
Russia exports grains to over 60 countries, and destinations are continuing to increase.
Last year, when Russia harvested a record high of over 100 million tonnes of grain, the government discussed the possibility of providing grain export subsidies. The government then provided RUB10 billion (US$315 million) to support 10 million tonnes of grain exports.
But unfavourable market conditions have caused grain exports to become a loss-making business, according to Zlochevsky.
