September 23, 2010

Russia's 2010 grain production to surpass local demand

Russia's 2010 grain resources will reach 90 million tonnes, 13 million more than the required domestic volume, Russian Agriculture Minister Yelena Skrynnik said on Tuesday (Sept 21).

"Currently, 54 million tonnes have already been gathered in. Up to 10 million tonnes will be harvested in Siberia and the Urals, according to our forecasts. Therefore, taking into account our 26-million-tonne reserves, our grain resources will reach 90 million tonnes," Skrynnik said.

She said subsidies would be implemented on the transportation of agricultural products to Central Russia to significantly reduce grain prices in the region.

Russia banned grain exports until at least the end of the year following this summer's severe drought and forest fires that destroyed around 10.8 million hectares of crops and reduced harvest forecasts to as low as 60 million tonnes, 38% less that in 2009. The ban has caused a steady rise in grain prices in Russia and around the world.

President Dmitry Medvedev said on Tuesday (Sept 21) that supporting the drought-hit farmers and restoring their pay was a top priority for the government. He said RUB35 billion (US$1.1 billion) would be allocated to aid the country's struggling agricultural sector.