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The mechanism for regulating grain exports should be developed before March 1, it is planned to put it into effect on April 1, said the head of the Ministry of Economic Development Maxim Reshetnikov at a meeting with Russian President Vladimir Putin.

“The mechanism should be developed, the chairman of the government set a task to develop it within a month, approve it in the government. That is, before March 1, this is the limit that we set, because it should start working from April 1,” he said.

The mechanism for regulating grain exports will consist not only of export duties, but also subsidies to agricultural producers, the head of the Ministry of Economic Development said.

“The main idea that really exists now is that we can, due to this damper, by and large, at the expense of funds that we receive in foreign markets, return them in the form of additional investments in our agriculture,” the minister said.

Reshetnikov added that the mechanism will consist of two parts. The first is the export duty, which will change according to previously known rules. “The second part of the mechanism is proposed to make a mechanism that would return all the money to agricultural producers. Well, now we are with the Ministry of Agriculture as a base (we are working on – TASS note) just a mechanism of subsidies in proportion to the area,” he added.

On January 15, it became known that the Ministry of Economic Development and the Ministry of Agriculture of the Russian Federation are coordinating a floating mechanism for setting the export duty, which will be permanent and will be established depending on the market situation.

Earlier, Russian Prime Minister Mikhail Mishustin signed a decree to increase export duties on grain crops as an additional measure to protect consumers in the Russian Federation and the domestic market. The resolution provides for the establishment for the period from March 1 to June 30, 2021, intra-quota rates of export customs duties for wheat – € 50 per ton, from March 15 to June 30 for corn – € 25 per ton, for barley – € 10 per ton.

Grain export

Reshetnikov said that grain exports from Russia in the first half of 2021 will amount to 20-21 million tons.

“We entered with the same wheat, for example, at the beginning of this year (today only the figures were checked with the Ministry of Agriculture) with an unprecedented high level of stock – we had almost 82 million tons of grain at the beginning of December. We accordingly set a limit within the quota – 17.5 million tons is from February 15. Until February 15 from the beginning of the year, according to estimates, 3-3.5 million tons is the maximum that can be exported. Therefore, in the first half of the year it will be 20-21 million tons, respectively 60 million tons are reserves for the second half, “he said.

In November, the Ministry of Agriculture reported that in the first half of the 2020-2021 agricultural year (from July 1, 2020 to June 30, 2021), it is planned to export 29.7 million tons of wheat, corn, barley and rye.

Source: TASS

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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