Russia on course to keep global grain supplies high despite export cap

Exports of Russian wheat and meslin flour more than doubled in January-February when compared with the same period of 2020, amounting to 7.59 million tons, according to the Federal State Statistics Service.

In monetary terms, wheat supplies abroad more than doubled to $1.884 billion. Exports of vegetable oil rose by 3.1% in annual terms and amounted to 589.2 thousand tons. They were worth more than $630 million.

Statistics also show that export of cereals by Russia in 2019 amounted to 39.4 million tons (including 31.9 million tons of wheat and meslin). Grain shipments in the 2019-2020 agricultural year (from July 1, 2019 to June 30, 2020) stood at 41.7 million tons. The country also supplied 33.2 million tons of wheat to the global market. The Ministry of Agriculture projects that in the 2020-2021 agricultural year grain exports will amount to 45 million tons.

Last April, Russia capped grain shipments until July, to avoid domestic price spikes amid the global coronavirus crisis. Moscow introduced export limits for certain grains, including wheat, rye, barley, and corn, capping supplies at seven million tons.

Booming agricultural production in recent years has enabled Russia to capture more than half of the global wheat market, becoming the world's biggest exporter of grain, thanks to bumper harvests and attractive pricing. Since the early 2000s, this share of the global wheat market has quadrupled.

For more stories on economy & finance visit RT's business section