January 3, 2013

Russia to boost grain exports

Russian leaders recognised that the embargo imposed after the failed 2010 crop was a mistake and decided not to ban grain exports after another poor harvest.

Farmers are making money as domestic wheat prices have closed in on international levels, and inflation also has been contained as exports from Russia's Black Sea ports have helped balance a tight global market.

By keeping the trade channel open, Russia recognises that, while it is a leading grains exporter, it is also a big buyer of meat and other processed produce. To boost food security, the government now wants to let the market work.

"Our domestic goal is to provide people with good food at reasonable prices - to do this we need to increase production," says Arkady Dvorkovich, the deputy prime minister responsible for farm policy in the government appointed last May.