Russia plans to keep and improve quotas on grain exports in the new season

the Ministry of agriculture has issued for public discussion a bill that would streamline the export of grain after the introduction of quotas for shipment abroad.

the Ministry of agriculture plans to continue to use quotas on grain exports to ensure food security of the country, but will continue to consider quota for actual shipments. The extension of export quotas in the new season will lead to a rise in world wheat prices because of the uncertainty with supply volumes of wheat from Russia, which is one of the world leaders in grain exports. Traders will try as soon as possible to buy and ship the planned volumes, which will lead to an increase in domestic procurement prices, resulting in the Ministry of agriculture could further enhance export restrictions.

it is currently planned that the government will determine the categories of goods which do not can be applied of incomplete customs Declaration. If at the time of submission of documents, the declarant will have full information on the goods, he will be obliged to promptly provide data, which is not enough.

we will Remind that the Ministry of agriculture has introduced quotas on grain exports in the period April 1 – June 30 in the amount of 7 million tons to ensure sufficient volumes of grain on the domestic market and limit the growth of prices for main crops. But on 26 April, the quota was exhausted with it for 24-26 April was formalized customs declarations for the export of 3 million tons of grain, which surprised the experts and market participants. Given that the export capacity of Russian ports does not exceed 1.5 million tonnes of grain a week to make 3 million t was only due to the incomplete Declaration of the goods. That is, the exporters declare more than they actually did, amounts of grain, while the custom designed, these parties, as it is physically shipped. As a result, traders who had grain in stock, did not make the quota and have suffered losses, and those who have declared the grain, but was not able to buy it, now quotas.

the Experts of Rusagrotrans to consider the decision of the Ministry of agriculture is correct, since the possibility of incomplete Declaration on the background of export quotas makes the market out of control. Also should consider fixing the remnants of quotas, especially in may and June, if the quotas will be introduced for the second half of the season. According to the head of the Agency, the actual shipments of Russian grain continued, and has already exceeded the quota of 7 million tons, the Volumes that were issued prior to the introduction of quota (April 1), allowed to export later. Therefore, beginning may 1 from Russia had exported 7.3 million tons of grain without regard to the EAEC, and the total grain exports in the current season will reach 44.4 million tonnes, 1 million tonnes lower than in the previous season.