“Given that exported one million tons per week by mid-may, maybe even before, we understand that the quota will end. Then there will be only the domestic market,” she said.
She recalled that this measure was developed by the Ministry of agriculture for several months and was offered before the start of the pandemic and the volatility of currency exchange rates as a mechanism of control of sufficiency of grain on the domestic market. And the situation and raising the price of grain has pushed the government to rapidly take the decision to launch this mechanism. Oksana Lute noted that the quota of 7 million tons was calculated based on the market needs, with the necessary carry-over on July 1.
According to the Deputy Minister, next week the price of grain not just stabiliziruemost, and a little lower. Now exporters are laying the discount in the sale of grain, taking into account risks to contracted and do not meet the quota. Lower prices will enable processors to buy grain from growers at reasonable prices. “And this is one of our key objectives,” said Lute.
It also has not excluded that the mechanism of export quotas can be applied in the following agricultural year – depending on what effect it will have on the price this time.
According to LUT, the plan for grain exports remained at 45 million tons, including 36 million tons of wheat. She recalled that a limit of 7 million tons is only valid for third countries, but not for the EAEC. The Ministry expects that they will get the necessary volume. “We already record the treatment on the supply of grain from, for example, Kazakhstan and Kyrgyzstan, which is associated with low harvest in these countries”, – said the Deputy Minister.
Recall that the quota for the export from Russia outside the EAEU operates from 1 April to 30 June for main grain crops – wheat and meslin, rye, barley and corn.
