Russia. Subsidized grain transportation quotas used by 60%


According to information of Russia’s Ag Ministry as of March 27, OJSC Russian Railways submitted requests for reduced-tariff grain transportation. Delivery of 1.28 MMT of grain from the following regions of Russia was approved under these requests:

Voronezh region – 40.3 KMT;
Kurgan region – 193.7 KMT;

Kursk region – 5.6 KMT;

Lipetsk region – 5.4 KMT;

Novosibirsk region – 0.0 KMT;
Omsk region – 0.5 KMT;

Orenburg region – 226.1 KMT;

Oryol region – 0.5 KMT;
Penza region – 64.6 KMT;

Samara region – 214.6 KMT;

Saratov region – 118.0 KMT;

Tambov region – 251.7 KMT;
Ulyanov region – 143.7 KMT.

Overall, the quotas under the above resolution have been used by 60%.

This grain is transported by rail to the stations of regions such as Buryatia, Dagestan, Zabaykalye, Krasnodar, Primorye, Khabarovsk, Astrakhan, Kaliningrad, Leningrad, Murmansk and Rostov, as well as to the city of Saint-Petersburg.

As for perspectives for 2018/19 season, recently Russian Ag Ministry reduced its grain production forecast by 5 MMT, to 105-110 MMT, reports UkrAgroConsult. The reason for this adjustment was drought conditions set in across the south of Russia, particularly in most of Rostov and Krasnodar regions.

At the same time, the Ag Ministry keeps its estimate for Russia’s 2018/19 grain export potential unchanged at 35-40 MMT. The reason is record high grain availabilities in the country, which totaled 32.8 MMT as of April 1 (up 16% year-over-year).

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop as well as crop conditions and progress in planting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.



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