March 14, 2008

Russia mulls on grain and meat price controls

Russia's agriculture minister disclosed plans to impose state price controls on agricultural products, especially grain and meat.

Agriculture minister, Alexey Gordeev, is proposing for a maximum permitted retailer mark-up of 10 to 15 percent in five categories, including egg, meat and milk. 

According to some reports, Russia's Ministry of Economic Development & Trade prefers an upper limit of 20 percent, however.

A larger grain intervention reserve of 2.5-5 million tonnes is also being sought by the ministry, along with an extension of current export duties until July.