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Russian Grain Transit Threatens Latvia’s Grain Exports: Ministry Report

The transit of Russian grain threatens Latvia’s grain export, according to the informative report on the import of Russian agricultural and food products in Latvia prepared by the Ministry of Agriculture (ZM) and submitted to the Legal Acts portal.

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The report states that in 2023, compared to 2021, i.e. before the war in Ukraine, the transit of Russian grain and rapeseed through Latvia, as well as imports, increased.

In addition, in order to move large volumes of grain, especially wheat and corn, Russia promotes exports with low prices, emphasizes ZM.

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According to the data of the Customs Administration of the State Revenue Service (SRS), in which cargoes are subject to both transit customs procedures and import procedures, 2.268 million tons of grain and rapeseed were imported into Latvia from Russia in 11 months in 2023.

The Ministry of the Interior states that the import of grain in Latvia from Russia in the 11 months of 2023 is 3.2 times higher than before the war in Ukraine caused by Russia. In 2021, from January to November, Latvia imported grain and rapeseed from Russia in the amount of 104,000 tons, while in 2023, in 11 months – in the amount of 332,000 tons.

On the other hand, the import of grain and rapeseed in Latvia in the 11 months of 2023 from individual CIS countries and Ukraine was 521,000 tons, which is 53% more than in 2022 as a whole, when 340,000 tons were imported.

At the same time, the transit in Latvia from Russia, Ukraine, Kazakhstan and Belarus amounted to 2.2 million tons in the 11th months of 2023, which is two more than in 2022 as a whole.

The total grain transit in Latvia from Russia in the 11 months of 2023 was 1.94 million tons, which is 97% more than in 2022 as a whole (900,000 tons), while the wheat transit was 1.5 million tons, which is 99% more more than in 2022 (769,000 tons).

Also, the Ministry of Interior states that the importance and impact of Russian imports and transit on Latvian producers is also reflected in the statistical data on the export volumes of the new crop of grain by month.

The data on the export of wheat, rye, barley and oats from Latvia by month show that in 2023 there was a significant deviation from the trend of the current export flow. Last year, the grain harvest was exported one month later, both compared to 2021, when a similar amount of harvest was obtained, and compared to the five-year average export indicators.

The representatives of the grain farming industry indicate that in August 2023, when the active sale of the new crop traditionally starts, the market was saturated with supply and the port infrastructure was not available for grains of Latvian origin, giving preference to other products transported in transit.

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ZM has also previously addressed the Ministry of Transport and SIA “LDZ Cargo” in connection with the concerns expressed by farmers regarding the lack of railway wagons and the need to provide Latvian grain exporters with grain hopper wagons for the transportation of produced products to Latvian ports for further export.

ZM explains that the production storage capacity is approximately 30% of the required amount, therefore the amount intended for export is actively transported to the ports of Latvia during the harvest, and the railway is used as the most efficient and economically justified means of transport.

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2024-01-06 14:03:19
#Russian #grain #transit #threatens #Latvias #grain #export

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