You are here

UPDATE 2-Russia faces lack of grain storage as record crop looms -union

* Grain Union sees 2016 grain crop at 114-118 mln T

* Sees 2016/17 grain exports at 38.5 mln T

* Hopes the government will cancel wheat export tax (Adds agriculture ministry comment in paragraph 5)

MOSCOW, Aug 16 (Reuters) - Russia is facing a lack of grain storage as it remains on track to produce the largest cereals crop in post-Soviet history, the head of Russia's Grain Union, a non-government farmers' lobby group, said on Tuesday.

Arkady Zlochevsky, the head of the union, told a briefing in Moscow he expected a grain crop in a range of 114-118 million tonnes, including 69.5 million tonnes of wheat.

Russia has about 120 million tonnes of grain storage capacity, however only 40 percent of facilities are capable of securing good quality, Zlochevsky said.

As a result, he said he hoped the government would lift a wheat export tax, which, he said, had cut farmers' revenues by about 50 billion roubles ($782 million). He did not elaborate.

The agriculture ministry said in a statement a local shortage of grain storage capacity was only possible in certain regions of Siberia if Russia harvested 115 million tonnes of grain, but added it maintained its forecast for a crop of up to 110 million tonnes.

About 73 million tonnes have already been threshed before drying and cleaning.

Traders have long lobbied for the cancellation of the duty. The tax is currently set at a minimum of 10 roubles ($0.16) per tonne but could rise if the currency declines.

Zlochevsky forecast Russia's 2016/17 grain exports at 38.5 million tonnes, including 28 million tonnes of wheat.

The U.S. Department of Agriculture (USDA) expects Russia to beat the European Union to become the world's largest wheat supplier in the 2016/17 marketing season, which started on July 1, exporting 30 million tonnes. ($1 = 63.9208 roubles) (Reporting by Olga Popova; writing by Polina Devitt; editing by Maria Kiselyova and David Evans)

© Copyright Thomson Reuters 2016. Click For Restrictions -

Read more about

Tip of the Day

Agronomy Tip: Add soil testing to your list

Do soil testing on your farm.

Talk in Marketing

Most Recent Poll

What is your favorite social media platform?