The Ministry of Agriculture has masterminded the toolkit to maintain stability all over food market
27 Mar, 2020
Facing the current economic conditions in the Russian Federation and other EAEU countries, the Ministry sets measures aimed at keeping the food market stability to meet the domestic demand for grain and its processed products.
In particular, the Ministry together with major domestic grain exporters developed a restrictive export quoting mechanism concerning the key crop items for the Russian market: wheat, corn, barley and rye. In addition, since March 27 the Ministry of Agriculture of Russia has started setting up for commodity interventions, taking into account the price caps for 2020-21.
The draft resolution of the RF Government “On the introduction of temporary quantitative restrictions concerning grain crops export to the Eurasian Economic Union non-members” provides for 7 million ton quota for the export of wheat and meslin, rye, barley and corn, excluding cereal seeds, for the period from April 1 to June 30, 2020.
“Given the current situation, the food security issues certainly come to the fore. The set of proposed measures should ensure the necessary volume of grain in the domestic market and prevent price runup for key crop items, as well as home consumer prices for flour, cereal, baking, meat and dairy final output,” supposes the Minister of Agriculture Dmitry Patrushev.
As the Russian Federation accounts for more than 80% of total production and about 79% of grain consumption in the EAEU, the quota should become a significant tool for these markets. At the same time, according to the Russian Ministry of Agriculture, the proposed revisions would not affect either accomplishment of the RF national programs goals or agricultural export totals in 2020.