December 30, 2011

Russia's food prices to rise by 4.4% in 2012

Russian food prices are anticipated to grow by 4.4% in 2012 compared to 4.2% in 2011, according to First Deputy Prime Minister, Viktor Zubkov.

Such a forecast could come true if agricultural industry borrowing increases, production grows, and equipment is renewed, Zubkov said.

In January-November, food prices in Russia grew 3.2%, according to data from the Federal State Statistics Service. In 2010, Russia's food prices jumped 12.9%.

Zubkov also said Russia exported 17.5 million tonnes of grain so far this agricultural year that started on July 1. Grain exports for the entire year, which ends on June 30, 2012, are expected at 24 million tonnes, he also said. The Agriculture Ministry earlier projected the figure at 25 million tonnes.

Russia has fully reinstated its position on the global grain market this year, Zubkov said, adding that the country became one of the world's three largest wheat exporters.

Russia restored its position on traditional markets, such as Egypt, Turkey, and the United Arab Emirates, and also significantly expanded its circle of grain consumers to 84 countries of Europe, Asia, Africa, and South America, he said.