News
25.05.2011
Russia: the Government may cancel grains export embargo from July 1
According to the representative of the department of economic bloc, the Government may cancel grain export embargo from July 1, 2011. Though the final decision is not accepted yet.
As a reminder, in August 2010, the Government of Russia imposed grains export ban, when the the drought destroyed the essential part of the sowing areas. According to the estimation of the Russian Grain Union the country harvested just only 60.9 mln tonnes of grains, a decrease of 37% compared to 2009, meanwhile the stocks level decreased by 25%.
In order to prevent grains prices increase, the Government accepted the decision to sell the Intervention Fund stocks (as of December 1, 2010 its volume totaled 9.64 mln tonnes of grain): about 3.5 mln tonnes of grain the regions shall receive without the auctions according to the allocated quotas, 844.8 thsd tonnes the Government sold during the period of February 4 – April 27, 2011 on the commodities interventions. The Government stocks realization not only prevented the prices increase, but caused their violent decrease. Thus, in the beginning of May, grains prices decreased by 10-15%. During the last time market participants applied to the Government in order to cancel grains export embargo due to the demand absence on the domestic market.
Source AgriMarket.Info
