Illegal circulation of grain and oilseeds must be suppressed

The Ministry of Agriculture of the Russian Federation is discussing measures to strengthen control over the export of crops to the EAEU countries.

To stabilize prices in Russia, duties have been introduced on the export of grain and sunflower seeds abroad .:

Sunflower seeds — 50% (from 1.07.2021)

Wheat — $ 45.5 / ton (from 03.09.2021)

Barley — $ 26.1 / ton

Corn — $ 51 / ton.

The only exception is exports to the EAEU countries. It is this channel that Russian producers can use to re-export agricultural products.

At a meeting with the Deputy Head of the Ministry of Agriculture of the Russian Federation, it was suggested that the volume of such illegal export could amount to 3-4 million tons.

To prevent illegal exports, primarily across the border of Kazakhstan, there was a proposal to return sanitary control at the border and track the movement of each batch.

Authorized organizations will have access to a database of certificates issued for each batch of grain and oilseeds for their delivery to Kazakhstan.

Also, information should become available on the vehicles that are used to transport these goods.

The supervisory authorities will be able to verify the license plates of the cars and stop those vehicles, information about which is not in this database.

It is planned that the inspection itself will be carried out by the Rosselkhoznadzor.

But the proposed scheme has a number of disadvantages:

— it is not possible to control the weight of each batch, because not all checkpoints have the ability to carry out weight control.

— even a partial strengthening of control measures may cause a negative reaction from Kazakhstan

Differences in customs and tariff regulation in Russia and Kazakhstan have already been repeatedly discussed at the level of the EAEU countries.

On August 20, 2021, the Eurasian Intergovernmental Council instructed the EAEU member states to unify the export regulation of wheat, sunflower oil and sunflower.