IKAR in Mass and Industry Media

Russia's Putin to chair meeting on grain harvest

Reuters

MOSCOW, Oct 10 (Reuters) - Russian President Vladimir Putin was due to chair a meeting on this year's grain harvest on Wednesday, amid persistent speculation that Moscow may impose export restrictions despite repeated government denials.

With the harvest nearly complete, the meeting will also focus on the situation on the domestic and international grain markets in a year when crops in major producers like the United States have been hit by severe drought.

"The goal of the meeting is to determine the preliminary results of the 2012 harvest, with a focus on grain cultivation," the Kremlin said in a statement.

"Particular attention will be paid to the situation on the national and global grains markets."

Summing up this year's harvest campaign, Agriculture Minister Nikolai Fyodorov said on Tuesday that he expected the 2012-13 grain crop to total 71 million tonnes or slightly higher, after hot and dry weather slashed yields by a quarter.

Fyodorov forecast that the wheat crop would be 40 million tonnes and that Russia would have an exportable grain surplus of around 10 million tonnes - slightly lower than previously expected.

Fyodorov and Deputy Prime Minister Arkady Dvorkovich, who is responsible for farm policy, have repeatedly ruled out any physical restrictions on grain exports or special tariffs to curb exports. Russia shocked grain markets in 2010 when it imposed a one-year export ban after a far worse harvest.

Instead, they are launching sales from Russia's 5 million tonnes in grain intervention stocks to ease supply strains on the domestic market.

The government has not spoken with one voice, however, with Economy Ministry officials calling for curbs to be imposed if grain exports continue at a rapid pace.

Putin, in his most recent public comments on the matter on Oct. 2, highlighted his concern about rising domestic grain prices but stopped short of calling for action.

Since the start of the 2012/13 marketing year, which began on July 1, Russia has exported about 8.4 million tonnes of grains, including 6.7 million tonnes of wheat, Russia's Institute for Agricultural Market Studies (IKAR) said on Monday.

10.10.12

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