Russian wheat sellers are expressing doubts about the need to use "limited preferences" when exporting grain abroad, according to the Interfax news agency. Russian wheat already has high competitiveness in the market. They commented on reports from foreign media that India is discussing the possibility of purchasing wheat at a discount due to the increase in global grain prices. According to estimates, the discount could range from $25 to $40 per ton.
"We do not see the current situation with India as full-fledged negotiations, rather, it's an exploration of positions. The desire to purchase wheat at a discount and payment in rupees is understandable, but it is not suitable for grain exporters," noted Eduard Zernin, the head of the Grain Exporters Union's board.
In his opinion, exporters constantly need working capital to support financing for agricultural producers and consolidate new grain batches. "Therefore, we cannot reduce requirements for the speed of settlements and currency liquidity," he added.
Zernin emphasized that Russian wheat already possesses high competitiveness, confirmed by record export volumes. "We are maximally loaded in terms of infrastructure; no additional preferences or incentives will significantly increase the export volume. On the contrary, limited preferences for some importers may cause misunderstandings among other buyers," he believes.
Grain market expert Alexander Korbut mentioned that India has expressed the possibility of acquiring 5 million tons of wheat. "Other action options were also considered to stabilize the market, including the sale of grain from the intervention fund," he explained. - "However, there was no specific mention of any supplier country; practically all possible regions from which supply could be made were considered."
"Regarding the discount: if we are talking about a single consolidated buyer acquiring all the required wheat, then a significant wholesale purchase with some discount between market agents is quite logical. This is a standard practice, there are no contradictions here," Korbut noted.
"However, it is worth noting that we still sell grain at a certain discount compared to French wheat and others. Therefore, in my opinion, the discount is already factored in," he added. - "Another solution could be government intervention. The government has the ability to temporarily reduce export duties or remove them entirely within certain limits for the supply of certain products to friendly countries. Thus, the state can forego some revenue and ensure delivery to another friendly country, India."
However, Korbut believes that such an approach is not entirely optimal. "The result of such a volume of purchases could be a decrease in prices in the global market, which will not lead to an increase in purchase prices for our producers. Export is needed to maintain the efficiency of the Russian agricultural sector, which is already experiencing pressure from export duties," he emphasized.
