December 30, 2010

Russia to maintain grain export ban

The country's grain export embargo will be in force despite a stable domestic food market.

"The ban was imposed very timely but in order for the situation on the food market to remain stable, we will keep it in place until July 1, 2011," First Deputy Prime Minister Viktor Zubkov said on Wednesday (Dec 29).

He said that if the grain export embargo had not been imposed, 12 million tonnes of grain would have been exported this year, which could lead to the grain shortages.

The government decided to start selling grain from the intervention stock, and this grain will reach particular consumers right after the New Year. He said 1,131 million tonnes of grain from the intervention stock should be shipped to 19 regions of Russia.

 
The severe drought this summer affected 25,000 farmers and households in 43 regions of Russia. To tackle the consequences, the Russian government began to ban grain exports on August 15, 2010.