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2020-05-18 08:06

Russian companies demand lifting of ban on rice exports

Domestic rice producers have asked the authorities to lift the ban on rice export from the country, which was imposed due to the difficult epidemiological situation.

According to the press service of the Southern Rice Union, today the volume of rice residues is almost 178 thousand tons, which is 20% more than last year's figure, so restrictions on exports can be lifted.

According to the decision of the board of the Eurasian Economic Commission, published in April this year, in connection with the COVID-19 pandemic, the second package of measures was introduced from April 12, including temporary restrictions on the export of a number of food products from the Eurasian Economic Union. These include rice, rye, millet, cereals, buckwheat, pellets from cereal grains, flour, as well as turnip, garlic and onions.

Representatives of the union believe that at the time of increased demand the restrictions were justified. However, since at the end of April the demand for groceries on the domestic market not only stabilized, but also showed negative values for certain positions, and the rice residues will meet the needs of not only the domestic market, but also the international market, there is no need to maintain restrictive measures.

According to Mikhail Radchenko, Executive Director of the Southern Rice Union, restrictions on exports will cause a surplus of rice in the country and reduce the profitability of Russian companies in this sector. The existing ban has already caused losses to rice producers, as in Russia the pandemic is not recognized as a force majeure, and they paid penalties under current supply contracts.

The press service of the Union also notes that most of the states exporting rice, competitors of Russian companies in the world market, also supplying long grain rice to the UAE and Russia have removed their restrictions.

Manufactured in Russia // Made in Russia

Author: Daria Vankova

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