August 31, 2010

Russia sees 2011 grain production at over 80 million tonnes

Russia's grain production is expected to increase to more than 80 million tonnes next year after the recent drought cut this year's crop by a third, according to the Agriculture Ministry.

"We are doing everything to ensure a harvest next year of at least 80 million tonnes," Agriculture Minister Yelena Skrynnik said. The ministry has estimated farmers may reap 65-67 million tonnes this year.

Russia may sow 12-15 million hectares (as much as 37 million acres) of winter grain compared with 18 million hectares in previous years, should the moisture content of the soil remain insufficient in the 37 Russian regions hit by the drought, Skrynnik said. Currently, 500,000 hectares have been sown with winter grain.

Even in a pessimistic scenario, the planting area for winter and spring sowing will be about 50 million hectares next year, Skrynnik said in Rossiyskaya Gazeta.

There are no grounds for domestic price increases now as Siberia and southern Russia have 15 million tonnes of grain that can be used to cover the shortage in central Russia, the minister also said. The country banned grain exports from August 15-December 31.