Russia plans to introduce wheat export quotas

Foreign media news on October 7: Russia plans to introduce wheat export quotas from mid February next year to stabilize domestic flour and bread prices. This also highlights the tightening of global wheat supply.

After meeting with the Russian Ministry of agriculture, the head of the Russian grain exporters association, Edward zenin, said that as part of the quota, the quantity of wheat exports will face specific restrictions. Export quotas will be based on exports this year and domestic demand next year.

The plan shows that Moscow is still worried about how to ensure adequate domestic food supply and curb food inflation. Wheat futures prices in Chicago have risen to near an eight-year high because U.S. wheat stocks are lower than expected. This year, Russia competed with the EU for the position of No. 1 wheat exporter.

Earlier this year, Russia said it would implement export quotas in the second half of each year. The grain export quota announced at the end of 2020 is 17.5 million tons, which is valid until the end of June 2021. After that, Russia implemented a formula based floating tariff on wheat exports.

The Russian Ministry of agriculture and the association of grain exporters met on September 30 to discuss the new export quota plan. Export quotas may take effect from February 15.

The Russian Ministry of agriculture predicts that Russia may export 31.5 million tons of wheat this year, of which the export volume from January to June 2022 will reach 14 million tons.

Source: Master Boyi

Post time: Oct-13-2021