Cabinet votes to annul corn export quotas

The Cabinet of Ministers voted to discontinue corn export quotas at a meeting yesterday, according to its website. Quotas for corn exports were introduced in October 2010 at 2 mln mt and increased to 5 mln mt in late March 2011. Quotas for other grains are being kept as planned until the end of June, though the government could consider their abolition in mid-May if domestic grain stocks satisfy the Cabinet, according to the Ministry of Agricultural Policy. Yegor Samusenko: We expect most of the companies sitting on corn stocks to export immediately, as the government has proposed introducing duties on corn exports of up to a maximum of between 12% or EUR 20 per mt, effective a month following passage of the relevant law (currently a draft has passed in the first reading of three in parliament). We see Industrial Milk Company (trading expected to begin on WSE in May) focusing more on the corn and thus likely to benefit from quota abolition (corn amounted for 60% of inventories as of end-2010, 1/5 of 2010 revenue). Overall, we continue seeing the government’s agricultural policy as sporadic and driven by short-term stimulus.