The Food Crisis

Russia to cut its wheat export amid global food crisis

A mid of global food production deficiency, Russia is planning to cut its wheat export. Despite rising global food prices Russia the world's third largest wheat exporter has to take such bold decision to meet its domestic needs said the concerned Russian official recently.

Commodity Online,

26 April, 2012

Agriculture minister Nikolai Fyodorov called the continuing drought conditions in Russia’s southern farming region as 'abnormal' and tried to calm consumers by noting that two special state reserves held some 23 million tonnes of grain for emergency situations.

This year Russia projected the 2011 output level of 94 million tonnes of grain production in the country. But an early winter chill quickly put that projection out of reach added the minister in an interview by a news channel.

How ever the latest cut in forecast brought the annual output level down close to 75 million tonnes, just five million tonnes higher than that of the annual domestic consumption mark and one making any exports extremely risky.

Russia’s farmers have also complained that turmoil on European markets was making it difficult to access loans necessary for making long-term investments needed to upgrade to more modern and efficient techniques.

Growing the rate of inflation, recent protest against the government,and other factors are causing Russia to feel tensed. Putin had strongly backed the 2010 grain export ban as prime minister but has not mentioned the idea since returning to a third presidential term in May.