Buckwheat production breaks records, while rice production declined

The high harvest of buckwheat harvested in the Russian Federation last year allows its processors this season (groats season - from September to August) to produce record volumes of buckwheat.

“This season we have records for the production of buckwheat,” said Irina Glazunova, deputy director general of the Institute for Agricultural Market Studies (IKAR), Interfax reports.

According to IKAR, for eight months of the season (from September 2022 to April 2023), the production of this cereal amounted to 382 thousand tons against 360 thousand tons for the same period last season. In January-April, cereal enterprises produced 180.1 thousand tons of buckwheat, which is 0.8% more than a year earlier (187.7 thousand tons).

This resulted in a decrease in wholesale prices - from 54.6 thousand rubles per ton as of January 10 of this year to 41.1 thousand rubles as of June 10.

At the same time, rice production, whose harvest fell last year due to an accident at the Fedorovsky hydroelectric complex in the Krasnodar Territory (the main rice producer in the Russian Federation), has declined. For eight months of the season, it amounted to 366 thousand tons against 402 thousand tons a year earlier, in January-April of this year - 175.1 thousand tons against 194.8 thousand tons, respectively.

"However, the reserves of this cereal are quite sufficient," Glazunova stressed. "The balance shows that with a demand of 650,000 tons per year, the supply will amount to 796,000 tons. So there are no fears for supply." Imports in general for the season will increase by 10 thousand tons, up to 210 thousand tons, exports will decrease from 90 thousand to 40 thousand tons.

Since the end of May, wholesale prices for domestic rice have fluctuated within 78,000 rubles per ton, Glazunova said. Imported cereals are cheaper - a ton of Vietnamese rice now costs 69.7 thousand rubles, Thai - 67.9 thousand rubles. "But this is temporary. The natural phenomenon of El Niño, which is expected this season, could lead to drought in Asia and higher prices," she said.

According to IKAR, the area under rice sowing this year is 189,000 hectares against 174,000 hectares last year. "Its more significant expansion is still being held back by the situation at the Fedorovsky hydroelectric complex. The dam has been strengthened, but the reconstruction is still ongoing. Most likely, next year it will be possible to talk about expanding the sown area by 200,000 hectares," Glazunova said.

The previous indicator of rice sown area, which exceeded 200 thousand hectares, refers to the 2016/2017 agricultural season (208 thousand hectares).

In total, according to IKAR, for 8 months of the cereal season, 1.274 million tons of various cereals were produced in the Russian Federation against 1.294 million tons a year earlier. In particular, millet production decreased to 73 thousand tons from 80 thousand tons, respectively.

In January-April this year, cereal enterprises produced 600.9 thousand tons of products, which is 5.4% less than a year earlier (634.9 thousand tons). In addition to buckwheat, the production of corn grits increased to 28.4 thousand tons from 25.1 thousand tons a year earlier, oatmeal - up to 24.3 thousand tons from 21.2 thousand tons.

At the same time, the production of semolina decreased to 31.6 thousand tons from 36.9 thousand tons, respectively, pearl barley - to 30.4 thousand tons from 35.3 thousand tons.