November 9, 2012


Russia may import wheat, rye for flour milling enterprises


Russian Union of flour milling and groats enterprises urged the government of considering the possibility of importing wheat and rye to provide raw material for flour milling enterprises of the country.


This was according to the letter of the Russian Union of flour milling and groats enterprises forwarded to Arkady Dvorkovich, Vice Prime-Minister of the Russian Federation.


The letter, signed by Arkady Gurevich, Chairman of flour millers, expressed concern for ensuring of the country's flour milling enterprises with wheat and rye stocks.


The current supply and demand balances of grains, based on the data of Rosstat, show that the deficit of wheat and rye in Russia will arise in late spring 2013.


As of October 1, the stocks of grains in Russia in all categories of agricultural enterprises totalled 35.8 million tonnes. Taking into account the volume of grains of the new crop, harvested in October (nearly five million tonnes), and subtracting the October exports (nearly 2.5 million tonnes), and the expected losses for the spring planting campaign (nearly seven million tonnes), then the domestic consumption (food and feed purposes, industrial processing) will total 31.3 million tonnes of grains only, or less than 3.5 million tonnes per month before the next harvest.


And it is very small, because the average monthly consumption of grains for food and feed purposes during recent years totalled 4.5-4.8 million tonnes, stated in the letter.


As a result, the Union considers it appropriate to think about creating of the economically attractive environment for businesses to import wheat to Russia (mainly from Kazakhstan) and rye from Germany.


Also, according to the Union, "it does not make sense to impose any limitations on the exports of grains, because the level of domestic grain prices makes grain exports as not competitive and it (exports) will stop".

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