Russia Not Discussing Grain Export Curbs

By CnAgri2012-10-15 19:26:45 Print

Russian President Vladimir Putin said last week there are no talks ongoing about Russia imposing grain export restrictions, despite his concerns over rising grain prices. Russia, one of the world's key wheat exporters, roiled world markets in 2010 when it slapped a year-long ban on grain exports after severe drought destroyed a third of its crops, report Reuters.

"Of course there is no talk about an export ban, which was justified in the abnormal drought of 2010," Putin told ministers in a meeting about this year's grain harvest. "The Russian government should ensure that only surplus grain is used for export."

Putin also said the government should continue to subsidise farm producers through reduced tariffs on transportation from Siberia and the Far East in 2012. Putin asked the government to work on similar support measures for the next year.

Russian wheat export prices have risen about 40 percent during the last four months and are currently $15-20 per tonne higher than global prices.

The purchase price of wheat with 11.5 percent protein content in Russian deep-water ports was quoted at 11,000-11,200 roubles ($360) per tonne last week on a carriage-paid-to (CPT) basis, according SovEcon agricultural analysts.