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Russian grain exporters union calls for limits to excessive grain exports

Russia’s export volumes from the first quarter of the 2024-2025 season were excessive, the country’s grain exporters’ union said on Wednesday, calling for a quota mechanism to limit shipments.

The union said the first quarter export volume was roughly 17 million metric tons, citing preliminary data, already a quarter of the new season’s export potential.

That volume “exceeds reasonable parameters based on the export potential of the season and demand on the world market,” the union said in a post on its Telegram channel.

The union, which claims to represent companies with an 80% share of Russia’s grain export market, said last season’s record export of 70 million tons was supported by massive harvests and large carryover stocks in recent years.

It said the export potential for the current season was 60 million tons and that the rest should be retained for domestic consumption.

“It is necessary to temper the enthusiasm of some companies and entrepreneurs who are exporting domestic grain to third countries for next to nothing in hopes of obtaining an increased quota,” the union said.

The quotas for the second half of the season, from February to June, are dependent on export volumes in the first half of the season.

The union did not specify which grain traders were exporting excessive volumes at low prices but said it will ask the agriculture ministry to review the quota distribution mechanism for the second half of the season.
Source: Reuters (Reporting by Olga Popova; Writing by Lucy Papachristou, Editing by Andrew Osborn)

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