The Russian Grain Union offers to zero the customs import duties for grains till July 2011. It is necessary for the further renewal of the domestic deficit, which will appear in February-March period in the regions, which suffered from the summer droughts. The Ministry of Agriculture and grain market participants support the idea. However, they should not account on cheap grain volumes, due to the fact that the price level on the world market is higher as opposed to the index in Russia.
Russian Grain Union sent the offer for zero tax imposition to the Commission for defending measure and the Ministry of Agriculture, stated Arkadiy Zlochevskiy, the President of the industry union. The Ministry of Agriculture supported the offer, stated A.Zlochevskiy. According to him, zero duties should be imposed for all grain group, including wheat, barley and rye. Now all grains, except of maize, are under the duty, which totals 5%. Grain volumes from the CIS countries can be imported without import duties.
A.Zlochevskiy explained that by March 2011, the country will face the domestic resources deficit: till the end of the season (June 30) it will be necessary to import about 3-3.5 mln tonnes of grains to Russia. Previously, with a good level of harvested grain volumes the country used to import 1-1.5 mln tonnes of grains, and only in 2009/10 agricultural year due to surpluses stocks, the country imported just 0.5 mln tonnes of grains.
If in 2011 grain production volumes will total the level less than 80 mln tonnes, the grain embargo imposed in the summer may be prolonged, added A.Zlochevskiy. While the current grain export ban is valid till June 30, 2011.
Grains import duty cancellation is the necessary measure, stated Vyacheslav Baklykov, the Deputy Commercial Director of the company RusGrain Holding. The cheaper processors purchase grains, the easier it is to hold the certain price level for their products, including cattle-breeding, stated he. /
