Posted on June, 12, 2024 at 10:03 am
Russian grain exporters see potential to increase supplies of pulses and cereals to India and China while continuing to focus on their traditional markets in the Middle East and North Africa, the agriculture ministry said on Tuesday.
Turkey's decision to halt wheat imports will not affect the level of Russian exports, it said in a statement following talks between Agriculture Minister Oksana Lut and grain exporters.
"The meeting participants came to the consensus that Turkey’s refusal to import will not affect the export potential of our country, since in the new (2024/25) season it is planned to reduce the supply to the world market from Russia to 60 million tons of grain," the ministry said.
"In the current environment, domestic exporters will focus on the key markets of the Middle East and North Africa, as well as on developing relations with India and China, where there is progress in the supply of pulses and broad prospects for grain crops."
Turkey announced last week that it would halt wheat imports from June 21 until at least Oct. 15 to protect farmers from price fluctuations, ensure domestic procurement of raw materials and create a favourable market for producers.
Turkey and Egypt have traditionally been key importers of Russian wheat.
Lut said last week that Turkey would remain Russia's strategic partner and its decision did not pose difficulties for Russia.
"Here we do not see any difficulties. For us, by and large, given that the harvest will be significantly lower than the last two years, it will not have any negative impact. We trade with a large number of countries, our wheat is needed in a large number of countries," she said.
Spring frosts followed by drought have already caused significant damage to the 2024 crop in Russia. The agriculture ministry is still maintaining its harvest forecast of 132 million tons, but says it may adjust it if the drought in several regions persists.
Agricultural consultancies have already lowered their forecasts for the wheat component of the harvest - IKAR to 81.5 million metric tons and Sovecon to 80.5 million.
Against the backdrop of high harvests in recent years, Russia has been actively increasing exports in an effort to find new markets. In the 2023/24 season ending on June 30, grain exports are estimated at up to 70 million tons, a record, including 53 million tons of wheat.
Russia may narrow the spread of its grain exports in the new season due to crop problems, keeping supplies to its traditional markets, VTB board member Vitaly Sergeychuk said last week.
According to the Rusgrain Union, Turkey was the second buyer of Russian wheat this season as of mid-April. Egypt ranked first, Bangladesh third, with Pakistan and Algeria also in the top five importers. Grain supplies to Turkey fell by 23% on last season, reaching 6.5 million tons at the end of May.
Source: The Times Of India