Tightening of export duty on Russian grain to affect production plans - RGU

Source

APK-Inform

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Russian Grain Union (RGU) supposes that the fluctuating export duties on grains will lead to significant changes in agricultural production, declared the head of the Union, Arkadiy Zlochevskiy on February 8.

“This mechanism will take money from farmers’ pockets. It will have sizable impact on production plans, primary crop rotation”, - he explained.

He said that the implementation of export duties was the key factor that pushed the prices of Russian wheat up this season.

“At the start of 2020/21 MY, the average price of Russian wheat was 220 USD/t FOB. It has reached 300 USD/t and it is close to 285 USD/t now. What pushed the price up? We think that the restriction of export of Russian grain was the main bullish factor, while the impact of the global trends was less significant. The export restrictions make consumers nervous and fuel extra demand for our grain. Consumers start to buy more, they turn to our competitors that result in higher prices of other origins. This forms the global trends”, - A.Zlochevskiy pointed out.

On February 8, RGU addressed to the president of Russia Vladimir Putin asking not to support a tightening of grain export restrictions and not to prolong the already implemented measures for the next season.

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