ST PETERSBURG, August 23 (RIA Novosti) - Losses sustained by Russia's agribusiness this summer as a result of the worst drought in decades are estimated at 32.7 billion rubles ($1.07 billion), Deputy Agriculture Minister Alexander Petrikov said on Monday.
"The year 2010 is the most difficult year in the history of our agriculture. The drought hit 35 regions, which sustained losses of about 32.7 billion roubles," Petrikov said.
Analysts polled by RIA Novosti earlier in the day said the overall economic cost of the drought might amount to $7-15 billion, with the worst damage sustained by the country's agribusiness. Central Russia, the Volga region and southern Urals were hit hardest.
The abnormal heat has destroyed grain crops on an area of almost 11 million hectares or 26 percent of cultivated land, Petrikov said.
"As of August 19, agricultural enterprises threshed 40.3 million tons of grain, which is 15.4 million tons less than last year," Petrikov said, adding that grain had been threshed on less than half of the sown area.
The ministry expects the grain harvest to reach from 60-67 million compared with 97 million tons harvested in 2009.
With domestic consumption of 77 million tons, carryover stocks of about 23 million tons and another 9.5 million tons in the country's intervention fund, Russia's predicted grain harvest in 2010 will suffice to meet the country's needs, Petrikov said.
