In 2020/21 MY, Russia to abolish grain export restrictions under certain condition

Source

APK-Inform

5233

In 2020/21 MY, Russia could refuse to introduce the grain export quotas if the production volume exceeds 125 mln tonnes with the export potential at 45 mln tonnes, informed several sources close to exporting companies, which, in their turn, referred to the Ministry of Agriculture of the Russian Federation.

The conditions allowing to avoid the export quotas in the new season were discussed in a meeting between the Ministry and the leading grain exporters on June 17, informed the Chairman of the Board of the Union of Grain Exporters, Eduard Zernin. Whether the market stays within the needed production and export figures will be clear closer to the completion of the harvesting campaign, he supposed.

“It could become clear even later – by the end of 2020 as the quotas are introduced in the second half of the season anyway, so, not earlier than January 2021”, - declared the Director of Trade House “RIF”, Turyanskaya Marina.

E.Zernin called the discussed figures “thoroughly acceptable” as they allow to export the sufficient volumes of grain and avoid the deficit and price growth on the domestic market.

“In case of lower production the quotas could be introduced to grant the food security of the country as it is done in the current season”. - he added.

The representative of the Ministry of Agriculture did not answer the question whether the elimination of quotas upon reaching of the certain volumes of production and export is considered. He said that the mechanism of quotas assumes that the market functions without limitations at the first half of the season, and the quantitative restrictions are implemented in the second half of MY with reference to the needs of the inner market.

The Ministry expects Russia to harvest 122.5 mln tonnes of grains, including 75 mln tonnes of wheat in 2020. The export of grains could reach 45 mln tonnes.

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