July 14, 2010

Russia's grain production to reduce by 20% on droughts

Grain harvest in Russia will show a decrease of 20-25% this year due to droughts in the Central regions and the Volga region, compared to the previous year index, said Pavel Skurihin, the president of the National Union of Grain Producers.

According to official data, the forecast was 95 million tonnes at first, but has been revised to 85 million tonnes. The forecast from the National Union of Grain Producers is lower.

Some of the warmest weather in a decade has spread across parts of Russia, prompting 14 regions to declare states of emergency. The Russian government plans to provide loans and subsidies to farmers in drought-stricken parts of the country, said Prime Minister Vladimir Putin.

The drought in parts of Russia has prompted speculation that the world's fourth-largest grain exporter may be forced to import grain this year just to meet domestic needs.