October 26, 2009

Russia's government will buy only a small volume of domestic grain surplus this year, due to expectations of high exports and huge demand from the animal breeding sector, according to agriculture minister Yelena Skrynnik on Friday (Oct 23).

 

The government will allocate just RUB9.5 billion (US$328.1 million) for grain purchases in the current crop year expected to start November 2, instead of the previously expected RUB20 billion (US$691 million), said Skrynnik.

 

In 2008-09, the government bought over eight million tonnes of grain after a bumper crop of 108 million tonnes.

 

This year, Russia expects to harvest 90-93 million tonnes of grain, with intervention taking place only in some regions.

 

Russia's state grain trader, the United Grain Company, has started registering potential grain sellers for the government intervention purchases from October 21.

 

Skrynnik said Russia had harvested 98.8 million tonnes of grain by bunker weight so far, sufficient to cover domestic needs and to export 20 million tonnes in 2009-10.

 

Russia exported a record 23 million tonnes of grain in 2008-09.