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Russia: The Russian Grain Union, whose member organizations account for at least half of the grain sales inside the country and two-thirds of Russia's grain export, want an increase in the Russian quota of grain exports to the European Union, Interfax posted on November 5.

A union official told Interfax that the union has sent a letter to Prime Minister Mikhail Fradkov asking him "to order associated ministries and other agencies to press the European Commission for a significant increase in the annual quota for Russian exports, or to impose restrictions on the import from EU member-nations of grain and products of its processing."

Gafta, the London-based international Grain and Feed Anassociation, reported that the European Commission has decided to allow Russia to export a total of 1 million tonnes of grain to the EU in the current agricultural year, which started in July 2004 and will end in June 2005.

The Russian Grain Union believes, however, that Russia could sell at least 1.2 million tonnes of wheat for human consumption, 2 million tonnes of fodder wheat, and 1 million tonnes of fodder barley in that period.

According to the Grain Union, in the 2002-03 agricultural year, before quotas were imposed on supplies to the EU, Russia exported over 5 million tonnes of grain, including 4.3 million tonnes of wheat to 24 EU member-countries. In the subsequent year, the number of importing countries fell to 11, and the amount exported dropped to 802,400 tonnes, including 412,800 tonnes of wheat. In the current agricultural year, just four countries continued to import Russian grain: in July and August, they purchased 298,000 tonnes of grain, in particular 274,000 tonnes of wheat.

While reducing supplies from Russia, the EU increased import duties on maize, rye and sorghum and started subsidizing the export of barley at 16.9 euros per tonne, the letter said.

"These steps reflect a consistent policy aimed at undercutting the competitiveness of Russia's grain exports, squeezing Russian exporters from the Mediterranean grain market, and harming Russia's long-term economic interests," the letter said.


09 November, 2004