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Date: 9 months ago   Category: Finances

Regions support grain export suspension. Whether to wait for changes?


Such measures can be taken for control of increase in prices in domestic market. According to the forecast of the Ministry of Agriculture, the grain yield this year will be almost one quarter lower than the Photo, last year's because of bad weather: Vitaly Timkiv / TASS the Ministry of Agriculture of the Russian Federation has held a meeting with the largest Russian exporters of grain and has asked businessmen to give the forecast for further shipments. In particular, because of a poor harvest and the increasing demand for the Russian wheat in regions are afraid of the shortage of grain and suggest to limit his export. It is written by Kommersant. In the current year, according to the forecast of the Ministry of Agriculture, slightly more than 100 million tons of grain, and in last, record year, 134 million tons will be collected, it is more even than in bumper-crop years of the USSR. At the same time export of grain from Russia in this season remains at the level of 44–45 million tons, including 35 million tons of wheat. According to FCS, since the beginning of year export has grown by 46%, up to 6,79 million tons. Supply of wheat has increased almost twice — to 5,52 million tons. Naturally, the concern grows: if in domestic market there is less grain, than it is necessary, the prices will sharply grow. For the present too early and it is irrational to limit export, the editor-in-chief of the Agroinvestor magazine Nikolay Lychyov:nikolay Lychyov the editor-in-chief of the Agroinvestor magazine "If to take the forecast of experts, including independent participants of the market considers, then the average forecast aspires to 110 million tons, plus about 20 million tons of stocks now. For consumption we need 80 million tons, we can export 43 million tons. I understand who lobbies possible restriction. Except the regional authorities, cattle breeders are producers of meat, milk, eggs; processors of meat — meat-processing plants; millers and bakers. They can be understood: any rise in price grain, of course, often influences income of business. If we introduce now any restrictions when grain export has just begun, we demotivate the main part of agricultural producers who need to allow to earn. Last year they had low profits. There was a record harvest which cost little very much, many haven't earned though they have made much and well". Now wheat for export costs about 230 dollars for ton — maximum price for the last three and a half years. Exporters had had an opportunity to win back last year's low and even zero profit. This year it is impossible to call a harvest low, it has only decreased to average annual values. It happened because of a drought in a number of the southern regions of Russia, but there are no serious reasons for concern in this market, the CEO of Institute of an environment of the agrarian market Dmitry Rylko:dmitry Rylko the CEO of Institute of an environment of the agrarian market "Any official information on this subject says wasn't. We know that the informal meeting in the Ministry of Agriculture, and more nothing has taken place therefore to speak so far about some restrictions early. I hope that we after all in this season will do without restrictions because the situation doesn't look extraordinary. She looks to get

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