The Ministry of Agriculture of Russia announced that from 2022 a grain traceability system will be launched in the country. The corresponding Resolution No. 1722 «On the Federal State Information System for Traceability of Grain and Grain Products» was signed on October 9th by Prime Minister Mikhail Mishustin.
The system will consolidate information about all companies that produce, process, store, transport, utilize, sell grain and grain processing products. It will also collect data on grain purchases for the intervention state fund.
Market participants themselves will download information into the system. Without accompanying documents issued in the system, it will be impossible to sell and export products. The public affairs office of the Ministry of Agriculture explained that with the help of the system it will be possible to trace the path of grain from the moment of its production to the sale to the end consumer.
However, the opinions of market participants regarding the creation and operation of the system for traceability of grain and grain processing products were divided.
So, the Ministry of Agriculture considers that this measure will improve the efficiency of control over the turnover of products, and the state will be able to track the contribution of individual regions to the overall task of ensuring the country’s food security.
Chairman of the Board of the Union of Grain Exporters Eduard Zernin is assured that the implementation of the system will only lead to positive changes on the market and considers this measure being very timely, since it will allow to establish a centralized qualitative and quantitative recording of grain, to increase the volume of supplies to some premium markets, and to boost opening of new markets, first of all Chinese market, where the highest requirements for the phytosanitary quality of grain apply.
Vice-President of the Russian Grain Union Alexander Korbut adheres to a different point of view. He doubts that at this stage the state is ready to implement the system of traceability of grain and grain processing products. This is primarily due to the acute shortage of regulatory bodies and professional personnel. «Additional costs await agricultural producers as well», — he added. If the state pays for the assessment of the quality of the harvested grain only, all other costs will put a strain on the farmers. The Russian Grain Union has previously opposed the initiative. According to the calculations of the Union, the proposed changes may lead to an increase in agricultural producers’ costs by 25-30 billion rubles per year and to a pressure on business.
The President of the Association of Enterprises of Ultra-Processed Grain «Soyuzkrakhmal», Oleg Radin is assured that the law still needs time to be finalized and it has to come into force not earlier than January 01st, 2022.
In general, market participants believe that the new system will have a positive effect and do not carry any risks for business, although they admitted that the administrative costs will increase as well as paperwork.