October 26, 2011

Russia may export 25 million tonnes grain

Russia could export 24-25 million tonnes of grain in the current agricultural year, which ends on June 30, 2012, said Russian Prime Minister Vladimir Putin.

The Russian government has not planned yet to purchase grain for its intervention fund, Putin also said. However, auctions are to be held at which agricultural producers could sell grain to the government amid a period of low prices, and then buy it back as the market conditions changes.

Earlier in October, First Deputy Prime Minister Viktor Zubkov said that the Russian government planned to set a prohibitively high export duty should grain exports exceed 24 million tonnes in the current agricultural year. This duty is likely to be floating, he also said, adding that the issue had already been agreed on with all the necessary government institutions.

As of October 11, Russia had exported 11 million tonnes of grain since July 1, when a ban introduced by the government on grain exports was lifted. Should export rates remain at this level, Russia's grain exports may total 18 million-19 million tonnes by the end of 2011, Zubkov said then.

As of Tuesday (Oct 25), Russia's grain harvest amounted to 95.0 million tonnes over a harvesting area of 41.1 million hectares, or 96% of the total crop acreage, the Agriculture Ministry said.

In 2010, the grain harvest fell 35% on-year to 60 million tonnes due to a severe drought.