"In season 2018-2019 manufacturers of millet, most likely, will continue to experience a shortage of raw materials. At the end of the agricultural season production of the grains may fall to the lowest level in recent years level. Therefore, we do not exclude further growth of prices," — said Leonov. According to experts, to reduce cost it is necessary to increase sown areas and gross harvest of millet.

However, according to him, since the consumption of millet is not so great, and, in addition, there are substitute products of the cereals, the price increase "will not have a noticeable effect on the situation in cereals and food market as a whole." As noted by the interlocutor of the Agency, wheat rose in price over the past year.

"If we talk about price in the opt, it is possible to note a more dramatic dynamics. Thus, in comparison with the beginning of the year, the cost of wheat 1 grade increased by 14%, with January of the previous year to 66.5%. The main reason for rising prices — low gross harvest of millet and as a consequence – the shortage of raw materials," — said Leonov. He said that the market needs at the level of 500 thousand tons in 2018 were collected 216 thousand tons of this crop.

"And if in the first half of the season, the shortage of millet covered with reserves, then in the second half of last year, the producers of wheat began to experience serious shortages of raw materials. In the new season entered the market with no carryover stocks. The low yield for the second year in a row due to high rates of harvest of this crop in the previous two years, therefore, the market formed oversupply, and as a consequence, very low price, that has hit the profitability of farmers", — said the Chairman of the Board.

According to Rosstat, the price of millet by 28 January compared to the end of December in Russia increased by 3.7% and for the week from 22 to 28 January, the price increased by 1.1%. As noted by the Agency, the area under millet in 2018 decreased in comparison with the previous year by 3.4% — up to 258,7 thousand hectares. The harvest of millet in the past year fell by 31.6%, amounting to 216 thousand tons. This is the minimum value over the past eight years.

Photo: Sovkusom.ru