May 28 2002, 17:06

Russian Grain Union calls on the Government to support falling grain prices.

AgroFact agency reported that Russian Grain Union called for the government to intervene immediately into domestic grain market and support grain prices. According to the President of Russian Grain Union, grain stocks are abundant, which caused grain prices to decline 8-10 percent during the past month alone. Besides huge stocks, prices were also affected by the decision of the EU to impose high import duty for grains.

Grain Union asked the government to purchase some of the grain and to decrease costs of grain transportation via railways. APK-Inform expects that grain prices in Russia are not likely to grow before the new crop season and will most likely even decline, after new crop will be harvested. This view is supported by Grain Union's experts. In the meanwhile ABN reported with a reference to MTS Zerno that total exports of wheat and barley from Russia reached 5.3mn MT thus far in the current season, which includes 3mn MT of wheat. Nearly 30% of the exports went through sea ports of Ukraine and Estonia as well as through railroads of CIS countries. Thus, grain producers should also blame lack of port facilities for low grain prices.