Russian Grain Union appealed to the government of Russia to cancel the current export duties on wheat. The reporting proposal appears in the letter of the Union, addressed to the Prime Minister of the Russian Federation Dmitry Medvedev.
According to Russian Grain Union, in 2016 grain harvest in Russia will reach 112 million tons, including nearly 65 million tons of wheat.
All supply and demand balances indicate the complete absence of any theoretical possibility of the deficit of grain resources for domestic consumers, the letter stressed. Taking into account that large-scale purchases of grains to the intervention fund are limited with capacities of the federal budget, only massive exports of grains can provide stabilization of the domestic grain market and prevent the collapse of grain purchasing prices, which already begin to appear in grain-producing regions.
According to Russian Grain Union, keeping of the current export duties is driven by the tendency to lower the purchasing prices for grains and maintain profitability of some livestock enterprises. As a result, the reporting measures will reduce the income of grain producers due to underestimation of the purchasing prices. For example, in 2015/2016 MY lost income reached nearly 30-40 billion RUR. (APK-Inform/Business World Magazine)