Russia's Wheat Woes: Diesel Costs and Dry Weather Impact Sowing

Russia's winter wheat sowing faces significant hurdles as skyrocketing diesel prices and adverse weather conditions leave only half of the crops planted so far. The deadline for planting is closing in, sparking concerns among experts about the potential impact on the country's grain output.

Pyotr Chekmaryov, a former senior Ministry of Agriculture official now affiliated with Russia's trade chamber, highlights the challenges as soil conditions remain tough and precipitation is scarce. Chekmaryov pointed out that fuel prices have surged to approximately 80,000 roubles per ton, further straining accessibility.

The agriculture sector, although resilient, is challenged by a mix of high fertilizer costs, elevated export taxes, and a decline in production due to attacks on refineries. With major seeding regions underperforming by 0.7 million hectares, the outlook for next year's grain harvest is concerning.

(With inputs from agencies.)