Russia: What to do with a large grain harvest under sanctions

Published 2022년 10월 11일

Tridge summary

Russia is set to have a record grain harvest of approximately 150 million tons, including 100 million tons of wheat, due to abundant production. However, the government faces challenges in storing and exporting the surplus grain, with exports currently lagging and farmers holding back in hopes of higher prices. To address these issues, the government plans to ease export restrictions and increase domestic processing of agricultural products. Additionally, the food embargo, introduced in 2014 in response to economic sanctions, will be extended until 2023 to safeguard national interests. This decision is part of a broader strategy to support the agricultural sector, which has seen significant growth with state subsidies and import restrictions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the Ministry of Agriculture, this year the grain harvest will be about 150 million tons, of which about 100 million tons is wheat. Incredible volume, which the country has never received. The last record in 2017 was almost 15 million tons less. The previous record for oilseeds will also be broken this year. There are plenty of vegetables. And we will even collect more fruits and berries than ever before. Now there are other issues on the agenda. We eat only about 80 million tons of grain. More than 60 million tons need to be processed or exported. According to the Union of Grain Exporters, now exports lag even behind last year's rates by 20%. The head of the Ministry of Agriculture, Dmitry Patrushev, recently said that only about 8.3 million tons of grain have been exported since the beginning of the year. Surplus must be stored somewhere. "All warehouses, all adapted premises were filled with grain. And sunflower is also coming. Where to put it? How to store it?" ...

Source: RG