Russia's Agriculture Ministry proposes quota of 25.5 mln tonnes on grain exports, including 500,000 tonnes for Far East - agriculture minister

MOSCOW. Oct 19 (Interfax) - Russia's quota on exporting grain could rise to 25 million tonnes from February 15, 2023, with 500,000 tonnes allocated to the regions of the country's Far East, Agriculture Minister Dmitry Patrushev told reporters following a meeting of the Agriculture Ministry.

"In terms of the quota that we traditionally set in February for the second half of the season, we will certainly expand the export window here. We are preliminarily planning that it will be 25 million tonnes, without breaking it down into individual crops. Moreover, we will allocate another 500,000 tonnes for exports from the regions of the Far East" Patrushev said.

"We have already sent the corresponding proposals to the Economic Development Ministry. I hope that they are supported," Patrushev added.

"It itself is arranged as a self-regulating mechanism and changes depending on market conditions," Patrushev said in relation to the grain export duty.

The price situation on the grain market now tends in favor of processors and livestock producers, but it affects incomes in crop production, he said. First of all, this is prompted by expectations of a record harvest, which could reach a historical 150 million tonnes this year. Another factor is the strengthening of the ruble exchange rate.

"We see this situation well and are implementing a set of measures to support farmers. Firstly, since August we have been buying grain daily for the state intervention fund. These volumes are growing. We have already bought about 900,000 tonnes from producers at good prices in current conditions," Patrushev said. "For example, the average price of class 3 wheat is more than 14,000 rubles, class 4 wheat - about 13,400 rubles per tonne. We plan to buy up to 3 million tonnes of grain by the end of the year, we have the resources for this," he said.

"Another important support tool is compensation of part of the cost of grain production and sales. In the first half of the year, 10 billion rubles have already been allocated towards this. Just a few days ago, the same amount was sent to the regions. I would like to point out that the sum of compensation will amount to 2,000 rubles per tonne of products sold from August 1 to December 31 of the current year. This is a decent level of support, which will "cover" about 5 million tonnes of grain for sale in the market," the minister said, adding that "next year we will certainly allocate additional funds to fully meet existing demand".

As Patrushev stressed, the main task of the Agriculture Ministry as a regulator is the balanced development of the industry, in which all market participants have full and equal opportunities. "Last year we provided additional support to cattle breeders due to rising feed costs. This year the situation in this segment is more favorable and our measures are focused on plant breeders," he said, expressing confidence that "the decisions made will have a positive impact on profitability in plant breeding and grain prices will reach a balance in the near future, taking into account the interests of all parties."