November 14, 2007

Russia increases grain export duties fearing grain shortage

Russia has increased the cost of exporting grain to other countries by EUR 22 for each tonne of wheat due to a an expected grain shortage.

However, industry players say there is no deficit of grain in the local market and the move of the government could mean losses for the Russian farmers.

Nikolay Demyanov of the International Grain Company said that Russia has grown as much as 80 million tonnes of grain this year, which means the country can export up to 12 million tonnes without harming the domestic market.