19 November 2003 09:39
RUSSIAN GOVT. MAY RESTRICT GRAIN EXPORTS - GORDEYEV
exported 3.5 million tonnes and that figure could rise to 5 million
tonnes before the end of the year, Gordeyev said. "But if we see that
the pricing proportions, I am referring to the prices of grain in
MOSCOW. Nov 19 (Interfax) - The Russian government may impose restrictions and raise duties on exported grain,
Agriculture Minister Alexei Gordeyev said at a Russian Grain Union conference in Moscow on Wednesday. This agricultural
year (which ends on July 1, 2004), Russia has already
tonnes, of which 75 million tonnes would be consumed. "If 6 million
tonnes are exported, it may leave Russia without carryover grain
Ukraine and the EU, will provoke exports of more than 5 million tonnes, we will impose restrictions and will raise
the duty to restrict export, to prevent the country from being left without resources and to prevent sharp price
growth," he said. The situation on the Russian grain market is currently being analyzed by a special
interdepartmental working group, Gordeyev said. The government has some 1.6 million tonnes of grain in the state fund,
which can be used for lowering internal prices on grain, Gordeyev said. This grain was purchased during interventions
last year. At the same time, Gordeyev recalled that last year Russia exported almost $2 billion worth of grain, earning
a position on the world grain market. However, Arkady Zlochevsky, president of the Russian Grain Union, said
restrictions on the export of grain will not help lower the prices. "On the contrary, it will worsen the prospects
of grain production and will undermine the grain producers' confidence in the administration," he said.
"If restrictions are indeed imposed, they should be imposed for period of trade interventions [the sale of grain
from the state fund] and not in the duty increases, but in the form of a ban, which will enable exporters not to fulfill
contracts for objective reasons," Zlochevsky said. He added that such bans do not contradict WTO norms. The Russian
grain market may be ready or trade interventions "by February-March 2004," Zlochevsky said. According to
Zlochevsky's forecast, the grain export this year "will hardly exceed 6 million tonnes." He believes that
the recent increase in the grain export "is prompted by expectations of restrictions." "However, already
in October, the export went down considerably and will become unprofitable by the beginning of 2004," he said.
Anatoly Mannelya, the head of the Russian government Economic Situation Center, said Russia's grain resources this
year would reach 80 million
reserves by the beginning of the new agricultural year," he said.
[CEIW] |
RUSSIA IN FACTS
