Russia to lift grain export ban after 2011 harvest

MOSCOW, RUSSIA (BNO NEWS) – Russian President Dmitry Medvedev on Tuesday announced that Russia will lift the grain export ban after the 2011 harvest.

Medvedev said that the ban could be lifted after it is determined how much has been harvested. Previously, Prime Minister Vladimir Putin said that the ban will continue in place until next year.

In August, Russia temporarily ban exports of grain until as well as grain products at least the end of the year due to the drought and fires that have devastated the crops. The ban caused a steady rise in grain prices in Russian and in the rest of the world.

The severe drought and fires destroyed around 10.8 million hectares of crops and reduced harvest forecasts to as low as 60 million tons, 38 percent less than in 2009. Russia decided that the available grains will be distributed in the affected regions instead of being dealt to foreign countries.

Russia suffered the worst heat wave since records began 130 years ago. The drought forced the Agriculture Ministry to cut its 2010 grain forecast to 70-75 million tons from 90 million tons. Russia currently holds 9.5 million tons of grain.

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