PRESS: Ministry studies mechanisms to limit Russian grain exports

MOSCOW, Dec 13 (PRIME) -- The Agriculture Ministry is considering mechanisms to limit grain exports from Russia under certain conditions, Minister Dmitry Patrushev said in an interview with Kommersant business daily on Friday.

“One should clearly understand that requirements of the domestic market and Russia’s food security is a top priority for the Agriculture Ministry. That is why we believe that special tools for possible restrictions on grain exports can be developed, to be used only under certain conditions,” he said.

The mechanisms are not intended for permanent work, Patrushev added.

“They should be applied only in case of emergencies, basing on the market situation… We cannot allow internal prices to fall or rise steeply or allow a lack of grain for our stockbreeders and flour millers,” he said.

Quotas for export companies are inexpedient, the minister also said.

Patrushev supported the idea of establishing the so-called “grain OPEC”, a union of the world’s largest grain producers.

“I think that the key producers should sit and agree, pay more attention to cooperation to raise the stability of the grain market, shape the price policy,” he said.

In November, Deputy Prime Minister Alexei Gordeyev said that the world’s largest grain producers would meet in January 2020 to discuss creation of a union similar to OPEC for the oil market.

Patrushev also said that the sale of the state-owned 50% plus one share stake in United Grain Company (UGC) is unviable.

“Considering the ambitious goal to raise exports and regulate the grain market, the state should not leave the company now,” he said.

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