World grain prices will rise in February-March 2010

President Rossiyskogo Grain Union (RGU) Arkady Zlochevsky expects that world grain prices, plummeting in recent years, will begin to rise in February and March 2010.

I hope the situation will be corrected in February and March, world prices will rise and stimulate the economy, - said Zlochevsky at a press conference in Moscow on Tuesday.

According to him, because of the sharply deteriorating world market RGU evaluates the export of grain from 16 million to 20 million tons against 23 million tonnes last year. But this volume should be removed, otherwise the pressure on the market will grow, he said, noting that currently the peasants are suffering from low grain prices, particularly in the Central Federal District, where no place to store the harvest.

This situation quite seriously undermines the economy of agricultural production, he added.

However, the head of RGU said, the inertia in the production continues, and laid a good foundation for next year's yield - more sown winter crops and raised plowed fields. By his estimation, winter sowing will be held on an area 18 million hectares, ploughland raised to 2 million hectares more than last year. This suggests that while the incentives to increase grain production is not completely undermined, - he said. However, A. Zlochevsky called for expanding the tools support the industry by the state.

According RGU, the grain harvest this year could reach 93 million tons (108.1 million tons in 2008). He believes that if the weather conditions in Siberia, which is grown a good crop, allow it to collect, the overall total yield may be more.


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