Russian official sees risks of grain export rise on interventions

MOSCOW, Dec 13 (PRIME) -- There are certain risks that grain exports could increase if there are massive interventions but the prices on the Russian market, which are higher than the global average, will prevent this situation from happening, the Deputy Agriculture Minister Ilya Shestakov said on Thursday.

“There are risks that exports will rise if we introduce massive grain interventions,” Shestakov said.

The Agriculture Ministry plans to start massive grain interventions in February–March to curb the increase in grain prices but it will also have to take control of the market: “And we need to look after the prices to prevent them from becoming attractive, driving grain abroad,” he said.

Shestakov admitted that it is a difficult situation, because in the European part of Russia they already hit the psychological notch of 10,000 per tonne of third and fourth class wheat.

Because of the drought, the harvest will stand at 71 million tonnes in 2012, which is far less than in 2011 when it was at 94.2 million tonnes.

On Tuesday the ministry said that Russian farmers exported 12.1 million tonnes of grain since the beginning of the agricultural year on July 1.

(30.7321 rubles – U.S. $1)

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