EXPORT DUTY IMPOSITION CUTS TEN TIMES RUSSIA'S GRAIN EXPORTS

MOSCOW, MARCH 26. (RIA NOVOSTI). -- Arkadi Zlochevski, president of the Russian Grain Union, has censured the recent governmental decision to introduce export duties on rye and wheat. At the Friday sitting of the board of the Russian Chamber of Commerce and Industry, he called this step "wrong and unjustified" and proposed legislatively to forbid the state to set export grain duties.

In the opinion of Zlochevski, the state is entitled to regulate the import of grain but export should be encouraged.

In answer to these words, the representative of the Economic Development and Trade Ministry said that the introduction of the export duty has axed the export of grain ten times. "The export duty has proved to be an efficient mechanism for protecting the market against the import of the valuable primary material", said Alexander Filippov, in charge of the tariff regulation board of the ministry.

He confirmed that the duty will remain effective until May 1. The Agricultural Ministry would like to prolong the term by a month but, following several conferences, the proposed was rejected, "although it was a tough fight", Filippov said.

According to the ministry, as of March 1, Russia's grain reserves stood at 21.5 million tonnes. The monthly consumption of grain in the country is 3 million tonnes. The remaining reserve for the year end is forecasted to be about 6 million tonnes.