Experts: Impact of EU's Russian grain tariffs on market price will be small

The European Commission plans to impose import tarriffs on Russian grain, increasing the price by 50 percent to eliminate demand for the product in Europe. However, Estonian experts believe this move will have little impact.
Pressure from European farmers to impose import duties on Russia is very high, because while several EU countries have banned imports of Ukrainian grain, there are no restrictions on Russian produce, said Indrek Aigro, head of grain brokerage at Copenhagen Merchants Group.
The expert said not much Russian reaches Europe and imports of corn are higher. Therefore, the price of grain in Estonia will not change much.
"Today's cereal prices are below cost for Estonian and European farmers. There is still a tendency to look out of the window rather than in the mirror, and then you have to do something that on paper looks like it has been done. This, in my opinion, is more like getting a tick in the book. But I don't see that this would in any way contribute to the price of grain for the Estonian or European farmer," Aigro told Tuesday's "Aktuaalne kaamera".
Andres Oopkaup, a grain grower and the chairman of the farmers' cooperative Kevil, said if there is a reduction from Russia, then European farmers can fill the gap.
"Demand for EU grain is growing. And it is clear that this could also have an impact on the price of cereals, because today Russia has sold most of its cereals with a discount of €20 to €30," said Oopkaup.
Airgo, the impact of customs on Russia would also be small, as transit is not banned.
"Transit of Russian grain, which today mainly comes through Latvian ports, and to a lesser extent through Estonian and Lithuanian ports, will remain operational. A very large volume of Russian wheat today comes through the Baltic States and this wheat reaches the North African market and the West African market," he said.
Estonia supports a European-wide ban on Russian grain. The EU produced 300 million tons of grain last year, and 4 million tons were imported from Russia.
This means the restriction is viewed as symbolic, Reuters news agency reported.
Madis Pärtel, undersecretary for the Ministry of Regional Affairs and Agriculture, said the EU is trying to find new ways to limit Russia's "war machine" and its budget.
"Europe is quite self-sufficient in its cereal production. Thus, the impact of this tariff restriction would be quite minimal. European Union producers have been under an embargo in Russia for about a decade," he said.
The European Commission is expected to impose a €95-per-tonne duty on cereals from Russia and Belarus, the FT reported, citing sources familiar with the plans.
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Editor: Merili Nael, Helen Wright
Source: Aktuaalne kaamera