Despite the fact that the problems with food in Russia, “the return” of these goods on the domestic market will create additional supply. However, manufacturers warn that this could turn into a glut in the market, a decline below the low product prices and the disruption of export contracts, to return which then will be very difficult.
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the Decision on temporary prohibition of the export of certain food products was taken at the EEC Board on 31 March. The Commission clarified that we are talking about the bulb onions, garlic, turnips, rye, rice, buckwheat, millet, groats, flour of rough grinding and granules of cereal grains, buckwheat, milled grain, prepared food products from buckwheat, crushed and uncrushed soybeans and sunflower seeds. Their export is prohibited for a period up to 30 June. The decision will come into force after 10 days from the date of its publication on the UNECE website. “The ban will allow to provide the population with sufficient quantity of such goods during the exacerbation of sanitary-epidemiological situation”, – consider in the ECE.
the Russian Ministry of agriculture stressed: at present, the shortage of these products is not observed. And the restriction of exports is used as an additional measure aimed at the preservation of a stable situation on the market of the EEU in the context of pandemic coronavirus. According to the Agency, in 2019, the export of soybean amounted to 895 thousand tons (in the production of 4.36 million tonnes), exports of sunflower – 707,3 kt (with a production of 15.3 million tons), rice – 173,2 thousand tons (with a total production of 1.09 million tons), buckwheat – 64,3 thousand tons (in the production 785,7 kt), Luca – 72.1 thousand tons (production of 1.67 million tons), garlic – 2,2 thousand tons (production – r202. 1 thousand tonnes), rye – 59,6 thousand tons (production of 1.42 million tons). Previously, the Agency had already restricted the export of grain up to 30 June of the country can take no more than 7 million tonnes.
fat-and-oil Union of Russia in recent weeks, insisted on the prohibition of the export of sunflower: the weakening of the ruble led to higher prices of seeds to 20% and, according to the Union, farmers hold raw materials in anticipation of even higher prices. “These measures will allow to save costs for the consumer in a significant loss of income and purchasing power” – the Executive Director of the Union Mikhail Maltsev.
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don’t agree with him Vice-President of Russian grain Union Alexander Korbut. According to him, only the rumors about the imminent restriction of export of sunflower crude sunflower oil in recent years has increased in price by $ 50/t and for the rest of the products he sees no benefit from the limitations of neither producers nor consumers. For example, buckwheat and rye are practically not exported – producers are satisfied with the price on the Russian market. The export volume of garlic is minimal, 90% on the contrary, we are importing from China, recalls the Director of the fruit and vegetable Union Mikhail Glushkov.
And in the products for which exports are significant, the ban could overheat the domestic market. The Russians consume rice about 550 thousand tons per year. And produced in Russia 620-650 thousand tons, says the President of the southern rice Union Igor Lobach. While we import approximately 120-180 thousand tons of rice (which is not grown here) and about the same export. If you leave this amount in the country, it will be more than we need. And to those producers who exported rice, the ban will cost to break contracts and return partners back they will already be very difficult, warns Lobach.