Border difficulties arose with the export of grain (Google Translate)

Against the background of the announced quotas and duties on grain exports, which are to enter into force on February 15, 2021, difficulties began in Russia with the shipment of wheat under current contracts. The parties are delayed for inspections for up to ten days, which threatens traders with contract disruption and losses for downtime, and may also undermine Russia’s position in the world grain market.

Three sources in the market told Kommersant that difficulties began with the export of Russian wheat. According to Kommersant’s interlocutor in a large exporting company, the customs service suddenly began to detain goods for inspection for up to ten days. Another source of Kommersant says that in recent days, difficulties began on the part of customs when processing grain for shipment by rail to the Baltic ports, and the situation with the acceptance of grain for transportation to the southern ports has significantly worsened. The director of Sovecon, Andrey Sizov, confirms that there are cases of delayed shipments, the customs delays the paperwork and cargo checks, and there is a high level of nervousness among traders. Dmitry Rylko, general director of the Institute for Agricultural Market Studies, knows that customs have questions about the weight of wheat consignments.

According to Glogos Project, as of December 13, freight in the ports of Rostov-on-Don and Azov cost $ 21-36 per ton of wheat, depending on the direction. In Yeisk and Taganrog – $ 20-34 per ton. From the beginning of the season to November 26, Russia exported 19.8 million tons of wheat,

which is 10% more than the previous season. All grain deliveries increased by 14.1% year-on-year to 23.7 million tons. According to forecasts of the analytical center “Rusagrotrans”, grain exports in December may be at the level of 4.4 million tons, including 3.75 million tons of wheat.

Eduard Zernin, Chairman of the Board of the Union of Grain Exporters (includes the United Grain Company, Trading House Rif, Aston, Glencore, etc.), recalls that Russia, in a “tough competition”, took the lead in the world grain market from the United States, Canada and the EU, and the leader must take responsibility for the uninterrupted supply of customers. “The current crisis with the export of previously contracted grain undermines Russia’s prestige on the global agricultural market and gives our competitors a reason to accuse us of irresponsibility and unprofessionalism,” he emphasizes. It is not the first time in Russia that there are difficulties with the export of agricultural products before the introduction of official restrictions. Thus, in November, on the eve of an increase in export duties on sunflower from 6.5% to 30%, exporters faced difficulties in obtaining phytosanitary certificates. Andrey Sizov hopes that the current difficulties with wheat export are not a full-scale campaign, but initiatives of local regulators. “These are exactly those administrative excesses that Prime Minister Mikhail Mishustin and President Vladimir Putin spoke about inadmissibility the other day,” the expert points out.

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