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RF Government Intends to Limit Grain Export

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    In January 2020 a new bill limiting grain export from the Russian Federation outside the Eurasian Union is expected into force. This week, the draft version was published.

    The export quota for grain for H1 2020 is expected to be set at 20 mn tons, according to Interfax. The Federal Customs Service is commissioned to control the process.

    Russia has been harvesting increasing amount to grain, breaking the historic record in 2017 with 135.4 mn tons. In 2018, 113.2 mn tons was harvested, and in 2019 121 mn tons.

    In 2018, Russia adopted a long-term strategy for developing the country’s grain sector. The strategy envisages increasing agricultural and food products export from $25.8 bn in 2018 up to $45 mn in 2024. Revenue from grain export should grow up to no less than $11.4 bn, and that from processed grain up to some $2.2 bn.

    During the agricultural season of 2017-2018, Russia exported 53.2 mn tons of grain, including 4.4 mn tons of wheat. Next season, grain export declined down to 43.3 mn tons, including 35.2 mn tons of wheat. The forecast for the current 209-2020 grain season is 45 mn tons, including 36 mn tons of wheat. The actual grain export in July-December 2019 made 23 mn tons, down 17% year-on-year. Grain export was down 15% year-on-year to 19.7 mn tons.

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