February 24, 2010

Russia grain output to surpass domestic needs


Russia faces the permanent tendency of producing more grains than needed domestically, which would push for a sustainable export trend.

Grain production in 2010 is expected to exceed 90 million tonnes against a domestic consumption of 75 million tonnes, despite changing business trends and unfavourable weather conditions.

Currently, intervention grains in Russia are about 10 million tonnes, and the government budget bears all expenses for grain storing. Russia does not plan to sell any grains from the intervention fund to the domestic market thus the grain volumes would be exported.

According to Sergey Levin, the general director of JSC United Grain Company, Russia also plans to modernise Novorossiysk Centre of Grain Production in order to increase the complex's shipping capacity and develop the Far East grain corridor, which will allow exporting grains to countries of the Asian-Pacific region. Russia also found a new deep-sea terminal at the Black Sea.

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