The Russian Government approved the Ministry's of Agriculture initiative on the grain export quota
3 Apr, 2020
The Prime Minister Mikhail Mishustin signed the Decree of the Government of the Russian Federation No. 385 as of March 31, 2020, providing for the introduction of 7 million ton quota for grain exports from Russia. The restrictive measure valid from April 1 to June 30, 2020, should both stabilize grain prices and ensure affordable bread and flour in the domestic retail.
According to the document, the restriction through the customs procedures is set for exports to the Eurasian Economic Union non-members of wheat and meslin, rye, barley and corn (grain seeds excluded), which are essential for the domestic market. The Ministry of Agriculture, the Rosselkhoznadzor and the Federal Customs Service are responsible for implementation of the Decree.
Given the current economic conditions, the measure invented by the Ministry together with domestic grain export majors is meant to keep sustainable food market of the Russian Federation and throughout the EAEU meeting the domestic needs for grain and its processed products. At the same time, according to the Ministry, such restrictions should not affect either accomplishment of the RF national programs goals or agricultural export totals in 2020.
Taking into account that being fairly high, the grain prices are displaying definite upward trend, the Ministry is about to start commodity interventions to stabilize the matters. In accordance with the Decree of the Government of the Russian Federation No. 1003 as of 05.10.2016, such mechanism is employed if the market price of grain exceeds that defined by the Order of the Ministry of Agriculture of Russia No. 110 as of 05.03.2020.
It is planned to sell this way about 1.5 million tons of grain exclusively within the domestic market. If the price falls below the targets established by the Order due to commodity interventions, these shall be ceased. At the same time, the grain sales from the intervention fund can be continued, in accordance with Order of the Government of the Russian Federation No. 817-p as of 31.03.2020.