The government has decided to restrict the export of both rice and rice groats from the country until the end of June 2025.
It was decided to extend the ban on rice exports until June 30 next year. The main goal of such a measure is to protect the domestic Russian market, which, from the government’s point of view, is a higher priority than exports.
The only exception that is not subject to the ban is the sale of rice to the EAEU member states, as well as to Abkhazia and South Ossetia.
In general, rice production in Russia is gradually and steadily increasing, as Deputy Prime Minister Dmitry Patrushev stated back in May. However, despite this, we have not yet reached such values that would allow us not to worry about the stability of the domestic market.
When this is done, the bans can obviously be lifted. At the same time, the government understands perfectly well that rice is a very promising export crop, so its cultivation for sale abroad should be stimulated.
It is planned that in the foreseeable future, the volume of rice production in the Russian Federation may increase to 2 million tons.
This would allow to saturate both the domestic market and the needs of exporters.
However, today the country is still quite far from the declared indicators: by the end of November of this year, only about 1.2 million tons of rice were harvested on its territory.
But this is progress compared to the same period last year, when the harvest volume was 1.16 million tons, experts note.
One of the opportunities to increase production may be the use of additional sowing areas in Primorye. This region is also attractive from the point of view of the fact that it borders China, which is one of the world’s main consumers of rice.
It is worth recalling that the government initially decided to ban the export of rice and risky cereals in July 2022, when an accident occurred at the Fyodorovsky hydroelectric complex in the Krasnodar Territory, which meant an inevitable reduction in production.
However, although the problem was resolved fairly quickly, the rice export restrictions have been extended several times.
Despite everything, rice prices have not yet shown growth, and even show a tendency to fall.
Significant carryovers, which have grown by 40-50% compared to last year, contribute to the decline, so it turns out that the export ban is working. When it will be lifted and how many more extensions can be expected is still unknown.
Experts believe that a quota, within which exports will be allowed, could be an alternative.
