Russia’s grain supplies to China grew rapidly in 2016

Almaty. January 6. Silkroadnews – Dynamic growth of Chinese consumers’ demand for Russian grain was observed throughout almost all the checkpoints between the two states over the past year, “Xinhua” agency says.

For example, the checkpoint of Heihe, one of the major crossing points on the China-Russian border, set a new record in terms of Russian grain import volume. As of December 20, 2016, 201 thousand tonnes of grain was imported through this check point from Russia, which is a 21% year-on-year.

Dongning, in the south of Heilongjiang Province, does not yield to Heihe on the rates of Russian grain imports growth. In the first half of 2016 Dongning imported from Russia 30.4 thousand tonnes of grain, which in value terms amounted to $7.2 million. The growth rate amounted to 16.4% and 20.5%, respectively.

Due to phytosanitary problems for many years China banned imports of wheat and some other grains from Russia. Rice and soybean were imported into China, though in small volumes. The situation began to change only with a protocol on the terms of supply of Russian grain to the Chinese market signed by two states at the end of 2015.

According to the document, China permitted import of Russian grain from Siberia and the Far East.

China is the world’s largest producer and major importer of grain. The country’s cereals production amounted to more than 600 million tonnes, while the volume of grain imports exceeded 100 million tonnes, with particularly high demand for imported soybeans.

“Xinhua” writes, not all the regions of Russia have got permission to export grain to the Chinese market so far; the Russian grain producers seeking for permits to export grain from the European part of Russia, including such regions as Krasnodar, as well as for export of finished products. In a few years they expect to raise the volume of grain exports to China up to 1 million tonnes.