City officials have asked Yeltsin to rescind the 20 percent import duty on food, claiming it destroys the established food-supply system, which could lead to starvation. General Sales Manager Christopher Goldthwait told a House Appropriations subcommittee that USDA would consider extending Russia more export credit guarantees to help buy US grain. However, prospects for near term sales to Russia remain unlikely. Chernomyrdin admitted the economic situation was complicated but stated the government had control. A shortage of spare parts is preventing the usage of much of the available machinery.
Farmers also face critical shortages in gasoline, diesel fuel, fertilizers, and pesticides.
Officials predict that farmers will have to resow about 2-2.5 Mn ha of their winter crops and sow even more grain than usual this spring to make up for the total crop areas cut last fall. Although the region has requested a loan from the federal government, it does not expect the funds to be approved because of the government's policy of not issuing soft credits. The region may be forced to borrow the money from the Central Bank of Russia at the full discount rate of 213 percent. This would increase the price of groats, flour, and formula feed as much as 45-50 percent. Latvia The Latvian Farmers' Union held its congress on March 26 and elected a new chairman, Andris Rozentals.