Russian government increased quotas for subsidized rail shipments of grain from Siberia

08.05.2018

According to the Russian Agriculture Ministry, 878 applications for subsidized grain shipments had been received from the Russian Railways by April 27.

The transportation of roughly 1.79 MMT of grain to a total subsidy amount of RUB 1.7 Bl (25,965 railcars) was approved by the reporting date. This includes 163.1 KMT from Novosibirsk region and 217.6 KMT from Omsk region, reports UkrAgroConsult.

According to an earlier report, the quotas for subsidized shipments from Omsk and Novosibirsk regions had been fully used up. To adjust them, the Russian government adopted on April 25 the Ag Ministry-drafted resolution No. 502 that provides for compensating the Russian Railways for loss of income due to the set reduced freight rates for grain goods. Under the resolution, subsidies for reduced-tariff delivery of 100 KMT and 150 KMT of grain were added to the quotas of Novosibirsk and Omsk regions, respectively.

Meanwhile, according to current data of Russia’s Federal Customs Service, roughly 44.2 MMT of grain had been exported by May 2, excluding deliveries to the EAEU countries. This is 43% more than at the same time last year (30.9 MMT).

Wheat exports exceeded 34.35 MMT (up 44% on the year). Barley exports reached 4.9 MMT that is 1.9 times as much as a year ago.

Corn shipments abroad totaled over 4.6 MMT that is up 9% on the year. Exports of other crops totaled 293 KMT (up 44%).

According to preliminary information of market participants, April’s wheat exports from Russia set a new record for this month.

Detailed information on perspectives of grain exports from Black Sea countries is available to subscribers for weekly market report “Black Sea Grain” and “Online market review” by UkrAgroConsult.

 

UkrAgroConsult

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