The FINANCIAL — On June 3, 2011, Dmitry Medvedev, President of the Russian Federation, appealed to market participants to avoid extensive grain exports after canceling of the embargo on grain exports, and mainly concentrate on supplying of the domestic livestock instead of export operations.
According to D.Medvedev, in the current year the country will probably produce 85-90 mln tonnes of grains, which will increase the export potential of Russia.
At the same time, grain owners should remember that the domestic animal breeding industry is in worse position compared to the crop growing sphere, added the President.
As a reminder, due to the summer drought and resulting sharp drop of grain production, since August 15, 2010, the Russian Government imposed the temporary ban on exports of wheat, barley, rye, maize and flour. After December 31, 2010, the Government excluded flour from the list of banned commodities. Only on May 28, the Government took the decision on cancellation of the embargo on grain exports from July 1.
The President hopes that the weather conditions in the summer 2011 will allow producing rather normal grain volumes.
In 2010 the agro-industrial complex of Russia suffered serious losses from the abnormal drought and wildfires. The drought, in particular, destroyed a third of grain sowings. The Government had to introduce severe measures to support agriculture, and even imposed the embargo on grain exports from the country.
The President promised that the Government will try to continue assisting to the domestic farmers.
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