November 26, 2007

 

Russia will not regulate grain exports

 

 

The Russian Agriculture Ministry does not consider it feasible to take additional measures to regulate the grain market in the near future.

 

Following consultations with officials from the Economic Development and Trade Ministry and the Russian Grain Union, Agriculture minister Alexei Gordeyev said the situation in the "country's grain market is unfolding in accordance with forecasts by the agriculture ministry and additional measures to regulate the market do not seem feasible in the near future.

 

He said the Agriculture Ministry, in conjunction with the Grain Union and Federal Customs Service, is continuing to monitor prices on the domestic market and grain exports.

 

Gordeyev said some time ago that additional measures to curb grain exports might be adopted in January at the earliest.

 

Grain Union president Arkady Zlochevsky said the next consultations are scheduled for December 4.

 

Asked about the possibility of additional export restrictions, Zlochevsky said there was no point in talking about this until the final harvest results are released, that is, until the middle of December.

 

The head of macroeconomic forecasting at the Economic Development and Trade Ministry, Andrei Klepach said earlier that there could be an increase in export duties or even a complete ban on grain exports.

 

The government on November 12 imposed an export duty of 10 percent, but not less than 0.022 euros per kg, on wheat and wheat-rye mix, and 30 percent, but not less than 0.07 euros/kg, on barley until April 30, 2008.

 

The Agriculture Ministry reckons Russia has the potential to export 12 million to 14 million tonnes of grain this year. Market experts forecast that the country could export about 11 million tonnes of grain by January 1.

 

The government has also been intervening on the grain market since October 29 by selling about 160,000 tonnes of wheat to flour mills.