Russia sets new record for grain exports despite sanction

Russia wrapped up its 2022-2023 agricultural year with an estimated record of 58-59 million tonnes of grain exports.

Eduard Zernin, chairman of the Board of the Russian Grain Exporters Union, said on Monday.

According to him, the agriculture ministry’s estimate of the export potential in the 55-60 million tonnes range is accurate.

He said Russian grain exporters had overcome hidden sanction barriers imposed by some countries at the start of the 2022-2023 season.

The season followed a record-breaking 2022, when Russian farmers harvested 157.676 million tonnes of grain, including 104.237 million tonnes of wheat.

The supply of Russian grain is regulated by a flexible export duty on wheat, corn and barley, which has been in effect since June 2021, and a tariff quota introduced in February 2021.

 In 2023, adjustments were made to the calculation of both indicators.

Mr Zernin said the change in the cut-off price for export duty on grain was made to channel funds from the state to agricultural producers, as it boosted purchase prices for exporters in ports, which stimulated grain sales.

He added that a new mechanism for distributing quotas would encourage exporters to increase shipments to needy countries.

The ministry’s estimate of export potential in 2023-2024 is 50-55 million tons, Mr Zernin said. 


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