November 21, 2007

Record grain exports for Russia in October

Russia shipped a record-high 3 million tonnes of grain in October 2007, according Nikolai Demyanov, director of the marketing department at International Grain Company.

The record exports were the result of high demand caused by the introduction of an export duty on grain on November 12, he said.

However, grain exports could fall by 50 percent in November, he said, as exporters have already sold the bulk of their reserves.

Total grain exports before the end of the year could amount to about 10 million tonnes. Taking into account the record set in October, Russia has exported 7.8 million tonnes since July 2007.

The Agriculture Ministry has said Russia could export 12 million to 14 million tonnes of grain this year.

Russia could take additional measures to tighten grain exports. The government is discussing the possibility of raising the export duty on wheat to 30 percent or even 50 percent.

At present, there is a 10 percent import duty on wheat (but no less than 0.022 euros per kilogram) and a 30 percent duty on barley (but no less than 0.07 euros per tonne). The duties were introduced on November 12 and will remain in effect until April 30, 2008.