Ministry of Agriculture recommended exporters not to sell wheat cheaper than $240/t

Russian grain exporters should not sell wheat on the foreign market for less than $240/ton. The representative of the Ministry of Agriculture announced the relevant recommendations at a meeting held on June 1. This was reported to Vedomosti by three of its participants. It was attended, in particular, by representatives of such companies as Aston, Trade House Rif and others. Requests there remained unanswered, as did other traders, in particular the United Grain Company. The representative of the Ministry of Agriculture also did not provide comments.

The recommendation of the Ministry of Agriculture is connected with the low cost of grain in the domestic market, says one of the participants in the meeting. According to Sovecon’s price monitoring data, as of May 31, 2023, grade 4 wheat in the country cost 9,925 rubles per ton, which is 33.6% less than it was on June 1 last year. With such measures, the Ministry of Agriculture is trying to support the cost of purchasing grain from farmers, explains independent expert Alexander Korbut. According to him, last year’s record harvest (157.7 million tons were harvested, according to the Ministry of Agriculture) led to a drop in the cost of this product on the domestic market. Against the background of rising costs, this threatens farmers with problems with profitability, which in the medium term can lead to difficulties with growing grain, Korbut is sure.