Russia introducing additional grain export quota of 5 million tonnes - govt

MOSCOW. April 22 (Interfax) - The Russian government has introduced additional part of the quota for export of grains from Russia outside the limits of the Eurasian Economic Union, it stands at 5 million tonnes and will be in effect until June 30, the government's website said.

Russian Prime Minister Mikhail Mishustin signed a relevant decree.

The Cabinet of Ministers said that the measure is aimed at supporting agricultural producers. "Given the record grain harvest in 2023 and the sufficient supply of these products on the domestic market, farmers will be able to make additional shipments of their products abroad," the government said.

The Ministry of Agriculture will distribute the additional quota among exporters, the report says.

The additional quota has been increased 1 million tonnes, from nearly 4 million tonnes initially. With the previously established quota of 24 million tonnes, the total quota for exports of wheat, barley and corn from Russia this year (from February 15 to June 30) will be 29 million tonnes. This is the first time a quota has been increased during its validity period since Russia started employing grain export quotas.

Additional quotas will be issued to foreign trade activity participants on an application basis, the Agriculture Ministry said. "Considering the significant increase in the volume of the additional part of the tariff quota, the maximum permissible volume of the additional part of the tariff quota that one exporter can receive has been increased from 45% to 70% of the size of the main part previously issued to him, and up to 170% for individual participants, the ministry said in a statement.

The additional quota will be distributed among the 261 companies that have already received a share in the main quota.

Russia began placing quotas on grain exports in 2020. The restrictions were introduced from April 1 through June 30 and totaled 7 million tonnes. From February 15 through June 30, 2021, a new quota with a volume of 17.5 million tonnes was in effect. At the end of 2021, the government decided that the quota would become annual, valid from February 15 through June 30.

The quota reached 11 million tonnes in 2022, including 8 million tonnes of wheat. Then, it rose to 25.5 million tonnes without division into types of grain in 2023. The quota for 2024 also does not provide for the specific division of grain.

The Agriculture Ministry forecasts that grain exports from Russia this agricultural year will reach 70 million tonnes.