Russia: Millers do not support the expansion of preferential delivery of flour from Siberia

Published 2024년 8월 28일

Tridge summary

The Union of Flour and Cereals Enterprises has expressed concerns over a proposal by State Duma deputies to extend preferential transportation rates for domestic flour from Siberia to all regions of Russia. They argue that this could harm flour mills in the European part of the country, which are already struggling with low profitability due to underutilized production capacity. The union fears that this policy could lead to the closure of mills and cereal plants, jeopardizing food security and export goals. Currently, these preferential rates are limited to deliveries from Siberia to the Far East, with government subsidies covering the losses for major carriers.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Union of Flour and Cereals Enterprises expressed concern about the proposal by State Duma deputies to expand the preferential transportation of domestic flour from Siberia to all regions of the country. This is stated in a letter from the organization addressed to the head of the Ministry of Agriculture Oksana Lut, Interfax reports. The appeal to the minister notes that the mass shipment of these products at reduced rates from the regions of Siberia could complicate the situation of flour mills located in the European part of the country. The authors of the letter gave several arguments in favor of this. First of all, they recalled that the supply of flour and cereals for consumers in this part of the country significantly exceeds the needs, and the production capacity of flour and cereals enterprises there is less than half loaded. Because of this, most manufacturers operate with low profitability or are even unprofitable. The union also fears that the arrival of flour from ...
Source: Rosng

Would you like more in-depth insights?

Gain access to detailed market analysis tailored to your business needs.
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.