December 11, 2010

Russia to increase spring grains planting area

To compensate for a decrease in winter crop planting, Russia plans to increase the area sown with spring grains by 5% to 30 million hectares in 2011 and will try to resume exports, according to Agriculture Minister Yelena Skrynnik.

"If there is no abnormal heat in 2011, we have all opportunities to get back into the world's grain trade," said Skrynnik. Russia lost 38% of its grain crop in this year's drought, the country's worst in a half century, and banned exports through July 1.

The government views spring-grain planting as a priority because 16% less land was planted with winter crops this year, Skrynnik said. The cost of spring planting is estimated at RUB220 billion (US$7.1 billion), of which RUB140-150 billion (US$4.5-4.9 billion) should be provided by banks in the form of loans, the minister said.