In Russia, due to low domestic prices and unfavourable weather conditions this season may be shortage of rice. This writes in Wednesday newspaper “Kommersant”, citing concerns of market participants.
According to the publication, according to Rosstat, in 2016 in Russia it was collected 1.07 million tons of rice, which corresponds to level of last year. However, due to rains in the Krasnodar region and the cereal yield of paddy in the current season did not exceed 40-55%, while the previous year reached 65%, said the publication of the market participants. In addition, the remains of raw rice in storage on January 10, 2017, also below last year’s figures.
The interlocutors of the newspaper specify that one of the reasons for possible shortages of rice in addition to adverse weather conditions can be low prices in the domestic market. With reference to the President of the Russian grain Union Arkady Zlochevsky, the newspaper writes that last season they remained at the level of 30 thousand rubles. per 1 ton, that has fallen to 25-26 thousand RUB According to him, manufacturers have no incentive to expand crops because of rising foreign exchange costs for machinery, plant protection products and fertilizers. Another source, the Executive Director of the southern rice Union (URS) Michael Radchenko argues that profitable business can be considered at an internal price of 34 thousand rbl. for 1 t of rice.
Low price on the domestic market, forcing manufacturers to increase exports, says a representative of a large domestic producer of rice. So, the newspaper writes, in the first five months of the season (from July to November 2016), Russia imported 50 thousand tons of rice when exported 74 thousand tons a Year earlier over the same period, the country imported 74 thousand MT of rice, while exporting about 35 thousand tons.
Interviewed by the newspaper retailers concerns about a possible shortage of rice yet. At the same time, they recognize that at the end of 2016, Russian producers have had some problems with supply, but they were not of a systemic nature.