December 23, 2010

Russian Grain Union recommends zero grain import duties

The Russian Grain Union has proposed to the Ministry of Agriculture to void the customs import duties for grains till July 2011.

The Ministry of Agriculture supported the recommendation, said Arkadiy Zlochevskiy, the president of the industry union. According to him, zero duties should be imposed for all grains, including wheat, barley and rye. Now all grains, except corn, are under the duty, which totals 5%. Grain volumes from the CIS countries can be imported without import duties.

Zlochevskiy explained that by March 2011, the country will face shortages. By the end of the season (June 30), it will be necessary to import about 3-3.5 million tonnes of grains to Russia. Previously, with a good level of harvested grain volumes, the country is required to import 1-1.5 million tonnes of grains.

If grain production is less than 80 million tonnes in 2011, the grain embargo imposed in the summer may be prolonged, added Zlochevskiy. The current grain export ban is valid till June 30, 2011.