Russian Egyptian rice is better

Events in the Middle East have led to changes in the grain market

Russia this year became a net exporter of rice, displacing Egypt from the world stage. In the first two months of 2011, Russia has put on the market 100,000 tons of rice, said Friday at a conference in the Altai region director of the Institute for Agricultural Market Studies Dmitry Rylko.

"Russia is a major exporter of rice, despite the huge loss of their own crops" — quoted by Reuters Dmitry Rylko. In the first two months of 2011, it supplied 100 tons of rice. Over the past seven years, the domestic rice export abroad increased sharply. In 2004 it was exported a total of 6 million tonnes of rice, then in 2009 — 92 thousand tons of rice (data ICAR). In 2010, according to preliminary data ICAR, rice exports from Russia reached almost 200 thousand tons. Such rapid growth of exports in ICAR explain how the increase in the supply of Russian rice due to the increase of its production, and the increase in demand on the world market. One of the main reasons for the growth of domestic demand for rice in the world — almost a full withdrawal from the world market due to the introduction of Egypt severely restricting the use of water, the study said ICAR. The country had previously been the largest exporter of medium grain and short grain rice — rice Russian counterparts.

Egypt imposed an embargo on the export of rice to October 2011 in order to keep the prices of basic commodities. However, the ban on the export of nominal because traders are allowed to export up to 100 tons per month under license. However, this month, Egyptian media reported that Egypt could announce a tender for the import of rice.

As a result, this year’s Krasnodar region — the main rice producer in Russia — took over Egypt’s role as an exporter of rice melkozernogo explains Rylko. The main share of rice exports from Russia goes to Turkey, which previously purchased this product in Egypt. Changes have also occurred in the structure of Russian exports. If you previously exported mainly cereals, in the last two years, the export of crude has risen sharply. Its share of exports in 2009 amounted to 37% in 2010, according to preliminary estimates, will amount to 73%, considered to ICAR.

In Russia in the past year because of the catastrophic drought and the loss of about 40% of the harvest of grain also had to impose an embargo on its exports. The ban on grain exports to Russia is valid until at least July 1, 2011 and, if necessary, depending on the new crop may be waived or extended. However, for certain types of products, in particular rice, embargo not available. Rice — the only product of cereal production which in 2010 grew up. According to the Ministry of Agriculture, in 2010, the harvest of rice increased by 16.2% to 1.061 million tons.

At the same time, according to the Ministry of Agriculture in 2010, the abnormal summer drought destroyed more than 13.3 million hectares of crops, accounting for 17% of the total cultivated area and 30% of all grain crops in the country. This, in turn, resulted in a decrease in grain yield by 37.3% over the previous year — to 60.9 million tonnes in clean weight.

Rice crop hit by drought and forest fires to a lesser extent than in other regions of the country as well as in Russia it is grown exclusively in the south of the country. More than 80% of total yield of rice account for the Krasnodar Territory. There are also the main crop area.

Rice also produced, but in much smaller quantities (the proportion of 1 to 7% of the total) in the Rostov region, Primorsky Krai, Astrakhan, Kalmykia, Dagestan, Adygea and even in the Chechen Republic. As the mouthpiece of the dynamic development of the rice industry in Russia has been the increased duties on imports of rice — from 0,03 euro per kg in 2003 to 0.12 euros per kilogram in 2010. The main importers of rice to Russia are Vietnam and Thailand. Due to customs regulations the government is trying to reduce its dependence on Russian importers and give an advantage to domestic producers of rice.

The import export sales seen opposite situation. Thus, according to ROIF Expert, in the first quarter of 2010 was imported only 37.1 million tons of rice, which is 56.2% less than last year. Prior to 2005, according to Rosstat, the import of rice has been a steady 450-470 thousand tons per year. In 2009, imports amounted to only have 257 thousand tons, and in 2010 will be pre-at no more than 190 tonnes of rice.

"Rice is a promising culture, but it is not included in the number of traditional crops for Russia. The fact that Russia after two months of this year, has become a net exporter, is likely a short-term trend, "- says the analyst Rye, Man & Gor Securities Catherine Andreanova. According to her, a Russian figure occupies a small share of consumption, the main share of wheat and coarse grains used as feed for livestock. Amid rising exports of rice shortage of the product in Russia is not observed, says the expert.

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