Russia, the world’s top wheat exporter, resumed shipments to Indonesia in October, the state agriculture watchdog said on Wednesday, after a pause since January due to negotiations between the two countries over access for Russian grains.

The watchdog said that Indonesia’s Quarantine Agency agreed in August to extend safety certificates for Russian grains, paving the way for the supply of 52,000 metric tons of wheat in October.

Russia’s agriculture export agency, Agroexport, estimated grain supplies to Indonesia, mostly wheat, at 1.3 million tons in 2024. It noted that before the new agreement, Russia had supplied only 123,000 tons of grain this year, all in January.

Russia is seeking to diversify wheat exports to Asia from its traditional customers in the Middle East but is likely to face stiff competition from the United States, supplies from which are set to grow following trade deals with Asian countries.

Russia’s wheat exports have fallen sharply this year due to global oversupply and low prices, which, along with local factors such as bad weather, a strong rouble and high fuel and fertiliser costs, made wheat cultivation less profitable.

Indonesia is one of the world’s top wheat importers, alongside China and Egypt. The country has joined the BRICS Plus group of major emerging economies, which also includes China, India and Russia.

Agroexport said that a free trade agreement currently being negotiated between the Russia-led Eurasian Economic Union and Indonesia will boost trade through a gradual phase-out of Indonesia’s import duty on grains.

“Receiving a zero tariff on wheat deliveries to Indonesia would be a good support for our exporters,” said Agroexport’s head, Ilya Ilyushin. Russian officials and businessmen are due to visit Indonesia for agriculture trade talks on October 17.
Source: Reuters