Russia is looking for new ways to restrict the country's grain exports if necessary under certain market conditions. This was reported by the daily newspaper Kommersant, citing an interview with Agriculture Minister Dmitry Patrushev.
In 2010, Russia shocked the world markets with a complete ban on grain exports following a poor harvest. In 2015, informal interventions were used to limit exports, making it difficult for traders to fulfill their supply commitments.
Since becoming the world's largest wheat exporter, the country has used less dramatic tools such as a grain export tax, which is now at zero but can be raised quickly by the government if needed.
The agriculture ministry's priority is the needs of the domestic market and the country's food security, Patrushev said in an interview with Kommersant published today (Friday).
"We cannot allow domestic grain prices to fall or rise significantly or the domestic market for livestock breeders or millers to be short of grain. Since we live in a market economy, our valued exporters may want to export everything under certain conditions. Of course, we cannot allow that to happen. "
The new mechanism being worked on provides a basis for restricting grain exports, but will only be activated when absolutely necessary, he said.
He gave no further details on how the mechanism would work.
Patrushev also said he supported an idea by Deputy Prime Minister Alexei Gordeyev, a veteran of the Russian agricultural sector, to create a global grain organization along the lines of the Organization of the Petroleum Exporting Countries (OPEC).
Gordeyev has regularly advocated a "grain OPEC", which aims to ensure stability on the grain market, coordinate pricing policy and solve the world's hunger problems. This could include Russia, the European Union, the United States, Canada and Argentina, among others.
"I believe that the main grain producers should sit down and negotiate and pay more attention to cooperation in ensuring the stability of the grain market and shaping pricing policy," Patrushev said.
The issue "clearly requires additional work, for example at the next meeting of the International Grains Council," he added.
Russia is one of the world's largest oil producers, but not a member of OPEC. It is, however, a member of the World Trade Organization (WTO).
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