June 7, 2011
Russia cautions against extensive grain exports after lifting of embargo
Dmitry Medvedev, President of the Russian Federation, has appealed to market participants to avoid extensive grain exports after the cancellation of an embargo, and to concentrate mainly on supplying of the domestic livestock instead of export operations.
According to Medvedev, in the current year the country will produce around 85-90 million tonnes of grains, which will increase the export potential of Russia.
At the same time, grain owners should remember that the domestic animal breeding industry is in worse position compared to the crop growing sphere, Medvedev added.
As a reminder, due to the summer drought and resulting sharp drop of grain production, since August 15, 2010, the Russian government imposed the temporary ban on exports of wheat, barley, rye, corn, and flour. After December 31, 2010, the government excluded flour from the list of banned commodities. Only on May 28, the government made the decision to cancel the embargo on grain exports from July 1 onwards.
Medvedev hopes that the weather conditions in the summer 2011 will allow production of normal grain volumes to resume.
In 2010 the agro-industrial complex of Russia suffered serious losses from abnormal drought and wildfires. The drought, in particular, destroyed a third of grain sowings. The government had to introduce severe measures to support agriculture, and even imposed the embargo on grain exports from the country.
Medvedev promised that the government will try to provide continued assistance to the domestic farmers.