Russia’s Agriculture Ministry has reduced the grain export quota of one of the country’s largest grain traders, Rodnie Polya (formerly known as TD RIF), for the current marketing year by almost 1.2 million tons. The quota has been cut to 2.78 million tons amid a row with authorities over phytosanitary issues, which have led to interruptions in the trader’s grain exports.
The ministry has also nullified the grain export quotas for Louis Dreyfus Vostok and four other companies. Rodnie Polya reported problems in obtaining phytosanitary certificates since mid-March, and in early April, it had to stop the operation of its river terminal in the Azov Sea, which handles around 15,000 metric tons of grains per day, or some 4 million tons annually.
As a result of the quota redistribution, the share in export of a leading grain exporter, Grain Gates, has risen by 1.864 million tons to 6.08 million tons.
Russia’s total grain export quota for the second half of the 2023/24 marketing season, which runs from February 15 to June 30, stands at 29 million tons, taking into account an additional quota of 5 million tons introduced in April due to high stocks in Russia after a strong 2023 harvest.
The Agriculture Ministry has said Russia’s grain exports this season could reach a record high of 70 million tons. However, analysts have already started lowering export forecasts and crop estimates due to difficult weather conditions.
The reduced export quota for TD RIF and the nullification of quotas for other companies could further impact global grain markets, which are already facing supply chain disruptions and tightening supplies.