The record harvest of grain crops led to a significant drop in their prices. The increase in yield does not compensate for the loss of farmers in the cost to the full extent, since production costs also increased. Yield of agricultural producers in the season 2017/18 significantly reduced.
According to the Ministry of Agriculture, as of mid-November this year, 137.7 million tons of grain in bunker weight were threshed in the Russian Federation. Compared with last year, this figure was 123.8 million tons. According to the Institute for Agricultural Market Studies, in November grain yield is the highest in the entire history of grain production in the country.
A new road to the port of Makhachkala is planned to be introduced already in 2018 in order to integrate the Republic of Dagestan into the transport and logistics corridor with the countries of Iran, India and the countries of the Persian Gulf.
We are talking about the North-South corridor, which will connect North Europe and Southeast Asia, connecting the ports, railways and highways of Azerbaijan, Iran and the Russian Federation. At the first stage, about 5 million tons of cargo are planned to be transported along the corridor per year, and in the future - over 10 million tons.
Grain crops that are grown in the Moscow region can compete with grain supplied from the Krasnodar Territory. And despite the fact that the gross grain yield in the region is less, given the price of delivery to the Moscow region, local grain is very competitive.
According to experts, 7-8 years ago no one expected that it was possible to grow crops in the Moscow region, and the production of wheat for food needs in the Moscow region was considered fiction and was perceived as "unprofessional". At the moment, the situation has changed dramatically.
The decree on subsidizing the Russian Railways' financial expenses for the transportation of grain in the amount of 3 billion rubles, which was prepared by the Ministry of Agriculture, finally came into force.
According to the documents, the total amount of subsidies will be about 2.99 billion rubles. The money will be provided by Russian Railways for the transportation of grain to the southern, northwestern and far eastern ports. Thus, it is proposed to stimulate the export of grain from 13 regions.
At the same time, on October 1, 2017, Russian Railways introduced a 10.3% discount to export grain tariffs (wheat, rye, oats, barley, corn, rice, buckwheat, beans, as well as peas, beans and other crops) from the stations which are located in 7 regions selected by the Ministry of Agriculture. The discount will be valid until the middle of 2018.
Cereals are a matter of pride for local farmers and officials. Our country ranks first in the world in their exports. However, grain is almost the same raw material as oil or ore. It has a low added value and is valued on the world agrarian market much less than its processed products - flour, cereals, as well as finished bakery products.
The result is that Russia in the chain of division of labor is at the very last place, as it sells grain, and buyers from other countries are already processing it into flour and bread and earn more on it.