Russian Grain Farmers Hit by Diesel Fuel Shortage, Export Volumes Plummet

Russian grain farmers in southern Russia are facing significant financial difficulties due to the current diesel fuel shortage, which has led to losses during the harvest and forced them to lower their selling prices. According to Anatoly Kolchik, director of the Grain Union of Agricultural Producers of the Rostov Region, many farms are now selling grain at prices below cost, with some even giving away batches for next to nothing.

The suspension of grain terminal operations in Novorossiysk after drone attacks has further reduced grain exports and increased the risks of bankruptcy for agricultural producers. Analysts have indicated that the current situation may lead to a series of bankruptcies among agricultural producers, with some farms already being forced to sell their land.

The Russian Grain Union reported that from August 1 to 10, Russia shipped 976.4 thousand tons of major grains for export, which is 22.2% less than in the same period last year. Analysts have proposed diversifying grain exports through alternative routes such as the international transport corridor 'North-South' through Azerbaijan and further to Iran.