Agriculture & Food

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 the Russian Grain Exporters Association had a meeting with the Russian Ministry of Agriculture, the head of the Association, Edward Zenin, said that as part of the quota, the number of wheat exports will face specific restrictions. The export quota will be based on this year’s exports and next year’s domestic demand.

This plan shows that Moscow is still worried about how to ensure sufficient domestic food supplies and curb food inflation. Chicago wheat futures prices have risen to near an 8-year high because US wheat stocks are lower than expected. This year Russia is competing with the EU for its position as the number one wheat exporter.

Earlier this year Russia stated that 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, valid until the end of June 2021. After that, Russia implemented formula-based floating tariffs 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.