Russia extends grain export ban until July 2011

[News_Editor]

Russia extends grain export ban until July 2011

2010-10-23 05:55:41 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Russia on Friday announced that it will expand its grain export ban until July 2011 due to the state of the world grain market, local media reported.

According to RIA Novosti, Russian Prime Minister Vladimir Putin made the announcement during a meeting on agriculture in Rostov-on-Don, a southern Russian city. The extension continues the moratorium issued on August 15.

Last summer, Russia was hit with an unprecedented heat wave that provoked severe drought and forest fires throughout the nation. The Russian Agriculture Ministry estimated that the disasters ruined around 13.3 million hectares of its grain crop.

In response, the Russian government temporarily banned exports of grain as well as grain products. Russia decided that the available grains were distributed in the affected regions instead of being dealt to foreign countries.

Despite the drought, Russia was still able to gather around 60 million tons of grain this year. In August, the Agriculture Ministry cut its 2010 grain forecast to 70-75 million tons from 90 million tons. In the past agricultural season (July 2009 July 2010), Russia exported 21.4 million tons of grain.

"This is the volume that was actually forecasted. Now we know for sure what resources we possess, what the grain balance will look like. There will be enough grain for Russia's domestic consumption, but not for exports," Putin added.

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