SIBERIAN FARMERS ARE THREATENED WITH RUIN DUE TO A LARGE HARVEST

High yields in the Novosibirsk region can lead to massive bankruptcy of local farmers. Grain prices continue to fall amid problems with its export. Deputies of the regional Legislative Assembly consider the only way to save – to increase the volume of procurement interventions by the state. One of the reasons for the current situation, experts call the decision of the federal authorities that established export duties.

According to regional statistics, the harvest in 2022 exceeded 3 million tons. This is about twice as much as domestic consumption in the Novosibirsk region. At the same time, it is difficult to realize the results of the work of farmers in other regions, since the country does not have a need for this.

In total, about 150 million tons of grain were harvested in Russia this year. This is more than enough to completely cover the internal market demand of 70 million tons. Siberian producers will not be able to sell the surplus abroad on their own for various reasons.

According to experts, the geopolitical situation has led to a significant narrowing of the market for Russian manufacturers. As the Sibkray newspaper notes, quoting the editor-in-chief of the Center for Business Journalism Andrey Kuznetsov, Russian Railways is experiencing an unprecedented load in the transportation of goods to the east. This is unlikely to allow you to get any benefits for the transportation of grain.

Considering the distance that cargo needs to travel to get to the Far Eastern ports (about 5 thousand km), it becomes very expensive to sell crops abroad. If we add to this the duties on grain exports established by the authorities this year, it is not difficult to predict the sad prospects that await Siberian farmers.

Regional deputies are calling for procurement interventions by the state, which would help to contain the fall in grain prices. The Ministry of Agriculture of the Russian Federation announced that it plans to purchase about 3 million tons of products in this way. This is unlikely to lead to the establishment of a grain balance, given the excess at the level of 80 million tons.

It has already been decided to send initiatives from the regional authorities to the federal authorities. They include the abolition of export duties, an increase in the volume of interventions to 15 million tons, the establishment of a moratorium on the use of GAS "Grain". One of the proposals aimed at preventing the bankruptcy of grain producers may be the extension of the terms of preferential lending. However, the question of whether the federal authorities will take such steps remains open.