An accident at a hydroelectric facility in the Krasnodar Territory, which supplies water to much of the rice fields in industry and the country, could put pressure on the authorities to ban the export of rice and rice cereals until the end of the year. Rice producers have already predicted a decline in planted area from 119,000 ha to 85,000 ha, but the harvest is expected to be captured for the domestic market. Export restrictions may stabilize rice prices in Russia.
Russia may impose a ban on the export of rice and rice cereals from July 1 to December 31. Project of the correct setting of estimates published on the portal of regulations. The ban on the volume of deliveries to the countries of the EAEU, Abkhazia, South Ossetia, Donetsk and People’s Luhansk Republics, exports under international agreements, the supply of rice for use in military operations formed by the Russian Federation, etc. The Ministry of Agriculture has not yet commented on the initiative.
The ban may be related to the collapse in the former bridge and dams at the Fedorovsky hydroelectric complex in the Krasnodar Territory, which consumes water in 80% of the rice fields in the ministry.
Kommersant’s interlocutors feared that the accident would lead to the loss of about 40% of the rice crop in a probable year. A temporary dam at the site of the accident was connected on May 10, but on May 13 the structure was washed out. Chairman of the Council of the Southern Rice Association (YURS) Igor Lobach spoke in mid-May “Interfax”that due to the accident, instead of 119 thousand hectares, 85 thousand hectares will be sown with rice. The harvest will be sufficient for domestic transport, but exports may be limited, they may be limited. Mikhail Radchenko, Executive Director of YRSC, specifies that the assessment of the new rice crop will be possible only in the first ten days of June, when the sowing campaign is completed.
Last year, about 1 million tons of rice was harvested in Russia. According to the Institute for Agricultural Market Studies (IKAR), on average, about 150-200 thousand tons are exported, mainly in the form of cereals. IKAR General Director Dmitry Rylko says that Russian rice would be in rather high demand on the world market, mainly in Turkey and the countries of Central Asia. According to his decision, a ban is allowed on a possible jump in prices and stabilization of the market, on the accumulation of part of the rice for consumption.
A Kommersant source in one of the major rice producers says that, given the exchange rates and the expected shortage of products, the company itself would refuse to export. The director of Sovecon, Andrey Sizov, says that the ban will not affect the global Russian market: over 50 million tons of rice are traded annually in the world.
Dmitry Leonov, deputy chairman of Rusprodsoyuz, says that so far the wholesale price for rice groats is justified. According to him, today it is traded at an average of 70.7 thousand rubles. per ton, when in the past it cost 62.7 thousand rubles. per ton, a year ago – 42.3 thousand rubles. per ton. “Perhaps the export ban will be aimed, among other things, at curbing prices within the country,” Mr. Leonov said.