Grain Harvest in Southern Russia Delayed up to Two Weeks Due to Fuel Issues

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Grain harvesting in Russia is lagging behind by one to two weeks compared to last year, according to market participants cited by Kommersant. As of July 1, only 1.3-1.5 million hectares of grain and leguminous crops have been harvested, representing just 3% of the planned area and three times less than the same period last year when 4.2-4.6 million hectares (9% of total sowings) had already been harvested.

In Russia, the harvest season traditionally begins in mid-June in the southern regions. The delay in starting the harvest campaign is attributed to adverse weather conditions (sowing was delayed in some areas due to prolonged rains, affecting crop growth) and fuel shortages (fuel deliveries have been delayed).

Market participants also highlighted rising costs for both harvesting and transporting grain from fields to storage facilities and ports – fuel prices have increased by one-third. However, farmers cannot pass these increased costs onto consumers because domestic wheat prices are determined by global market conditions. The combination of higher production costs and low selling prices will inevitably reduce the profitability of agricultural businesses.