Miller Magazine Issue: 154 October 2022

26 MILLER / OCTOBER 2022 NEWS The Russian Grain Union (RGU) proposes to abandon the current floating tariff on grain export and to restrict shipments with a seasonal quota. This is stated in the letter of the RGU sent to the country’s government, Interfax reports. The Union said that the high grain crop, which may amount to a record 137-145 mln tonnes, including 92-96 mln tonnes of wheat, and weak exports have led to “a continuous decline of purchasing prices, which, against the background of rising transport costs, are increasingly approaching the level of the current cost price” According to the union, the situation can be corrected by large-scale export of grain, “but it faces both external informal restrictions and internal, primarily a floating export duty on grain, thus, farmers do not receive part of their income”. “As a result, grain exports are extremely sluggish. It has decreased not only in terms of the volume rolling back to the level of 2016/17 season, but also in terms of the number of importing countries”, the RGU emphasized. Russian Grain Union proposes to abandon floating grain export duty Russia is set to have record supplies in 2022/23, enabling the country to soar to record exports. Produc- tion is up more than 20 percent from last year on much improved weather conditions and the country has large carryin stocks. Russia’s grain harvest this year could exceed 140 million tonnes, and perhaps reach 142 million tonnes, Russian Dep- uty Prime Minister Victoria Abramchenko told reporters. “We have a bumper grain harvest this year. We forecast more than 140 million tonnes, maybe even 142 million tonnes,” she said, adding, “And, of course, wheat is also at a very high yield.” The restrictive trade policies in place during the second half of the 2021/22 marketing year prompted larger on- and off-farm stockholding, leading to large carryin stocks from which to ship. Russia implemented an export quota of 8 million tons between February 15 and June 30, the end of the marketing year. So far in 2022/23, exports have begun to increase. However, continued challenges in booking sales and export logistics, and the continued government-imposed export tax have resulted in a more modest start of the export campaign. Over the course of the year, Russia is expected to increase monthly shipments to offset lower exportable supplies from its two main competitors. The EU has a smaller wheat crop and will also use more wheat domestically for feed due to lower corn production. Ukraine also has a smaller crop and faces continued logistical constraints on its exports. While the grain corridor is currently open, there are upcoming discus- sions regarding its renewal. As the largest exporter and with a bumper crop, Russia seeks to expand its markets overseas, by boosting exports and continuing to open new markets such as Algeria. Record Russia wheat supplies enable record exports