MOSCOW - The Russian government announced plans Monday to limit grain exports in a bid to stem a spike in prices at home set off by the collapse of the ruble.
It said the customs barrier on exports was to ensure its own food security as the currency crisis bites.
The tumble in the value of the ruble by 50 percent has made grain exports far more profitable for Russian farmers and, despite one of the best harvests on record, domestic wheat prices have started to soar.
"We had a good harvest but at the same time, due to the volatility of the ruble, prices are very advantageous and exports have risen considerably," Prime Minister Dmitry Medvedev said at a government meeting.
"We need to have minimum reserves that assure Russia's food security. In this context I think it is time to reflect on administrative restrictions on exports," he added.
The measures could be signed by Medvedev within 24 hours, Deputy Prime Minister Arkady Dvorkovich was cited as saying by Russian news agencies.
Dvorkovich said Russia has exported 21 million tonnes of grain since July out of a potential annual total of 28 million tonnes.
Russia harvested 104 million tonnes this year.
Wheat prices jumped more than 4 percent last week on the Chicago exchange as traders feared that Russia, usually the world's number three grain exporter, might impose an export ban as it did in 2010 when it suffered a poor harvest.
Russian authorities denied they were considering such an option, but there were indications that the government may have been trying to slow exports to keep the politically sensitive price of bread from soaring.
According to Russian media, the veterinary and agricultural service has been issuing only a small percentage of the export certificates it normally does, without providing any official explanation.
And the national railway company informed exporters that it is cutting back on grain shipments due to circumstances beyond its control, again without providing an explanation.
Then a major association of grain exporting companies said it was halting purchases until prices and supply stabilised.
The business daily Kommersant reported recently that the politically-sensitive price of bread could jump by 10 percent in the coming weeks as Russians celebrate the holidays, prompting authorities to take action to ensure no abusive price hikes.
AFP
