Russia (bbabo.net), - From February 15, a quota for grain exports will work in Russia. The authorities expect that, together with export duties, the quota will help maintain the necessary level of grain within the country and minimize the increase in domestic prices for flour, bread, milk and meat.
The tariff quota for grain export will be valid until the end of the agricultural season - until June 30, 2022. The quota for grain will be 11 million tons: for wheat - 8 million tons, for rye, barley and corn - 3 million tons. This measure was also in effect for grain last year: the total volume of grain exports was then limited to 17.5 million tons. This year, a separate quota was introduced for the export of wheat. On February 8, the Ministry of Agriculture allocated a quota for the export of grain, allowing 206 companies to do so, of which 163 were for the export of wheat.
The quota is a tool for restricting exports, not a target and certainly not a KPI, notes Eduard Zernin, Chairman of the Board of the Union of Grain Exporters. "The government introduced a quota to protect the domestic market, for these purposes the maximum volume of wheat and other grain crops for export outside the EAEU was designated. Therefore, from the point of view of the state, nothing terrible will happen if the quota volume is not fully selected," the expert says.
From a business point of view, the quota cannot be taken completely due to the large number of weak companies that received small volumes. Export on such a scale makes no economic sense, Zernin believes. "Perhaps in the next seasons it will be useful to introduce a lower threshold for the quota, for example, in the amount of the minimum ship lot," he adds.
And the domestic consumer will notice changes in the regulation of grain exports, because all the restrictive measures have been taken exactly so that the consumer does not feel the volatility of the world market on his wallet, says Zernin.
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