September 7, 2012

Russia's 2012-13 grain exports to fall

Russia will sell less grain this year than last year with the volume of deliveries abroad dropping to 5.3 million tonnes between July 1 and September 5 this year from 6.5 million tonnes on-year.

"We believe that taking into consideration the price correlation on the local and foreign markets, the rate of exports will fall," Deputy Agriculture Minister Ilya Shestakov said Thursday (Sep 6).

Shestakov said that the authorities still had no plans to limit the grain exports.

Shestakov also said, "Grain interventions at a local level may start in several federal districts before December, if we see a significant growth in prices." If farmers do not sell their grain and hope for a continuing price rise, the government will start massive interventions in order to reduce the price, he added.

Shestakov said in late August that grain interventions were unlikely to start before December. He declined to reveal the exact amount of grain to be used for interventions.

He said that the interventions will be done at commodities markets and not through direct deliveries to regions. The government plans to choose a new intervention agent for 2014, as the current one, the state-run grain producer United Grain Corporation, will be privatised by that time.