The mechanism of the grain export quota is relevant, despite the high harvest – Ministry of Agriculture of the Russian Federation

The mechanism of the grain export quota is relevant, despite the high harvest – Ministry of Agriculture of the Russian Federation

The mechanism of the grain export quota is relevant, despite the high harvest - Ministry of Agriculture of the Russian Federation

MOSCOW (Reuters) – The Ministry of Agriculture of the Russian Federation reported that the mechanism of the export quota for grain, which was used in the country from April to June against the backdrop of the outbreak of the coronavirus epidemic, remains relevant, despite the prospects for a good harvest.

“Despite the prospects for a good harvest, the mechanism of non-tariff quotas for grain exports remains relevant, and the Ministry of Agriculture plans to improve and apply this measure in the future,” – follows from the message of the Ministry of Agriculture, sent out after the meeting of Deputy Minister of Agriculture Oksana Lut with the largest grain exporters.

The ministry did not provide additional details regarding the quota.

The Grain Exporters Union reported on social media after the meeting that the grain quota will not be prohibitive in the current 2020/21 marketing season, which began on July 1.

The exact mechanism for the quota is still under discussion, two sources familiar with the situation told Reuters.

According to them, the size of the quota could be 20 million tons of grain for the period from January to June 2021.

The Russian Ministry of Agriculture did not respond to a Reuters request for comment.

The ministry previously estimated Russia's export potential from July 2020 to June 2021 at 45 million tons of grain. Since the beginning of July 12 million tons have already been exported.

One of the world's largest wheat exporters, Russia, expects its largest grain harvest in 2020 since a record 2017. The gross grain harvest in Russia has already amounted to 121.8 million tons from 88% of the sown area.

(Polina DeWitt. Translated by Olga Popova. Editor Dmitry Antonov)

Leave a Reply

Your email address will not be published. Required fields are marked *