Russian grain ban in force

A BAN on Russian grain exports ordered by Prime Minister Vladimir Putin came into force yesterday, with the government battling to keep down prices of basic foodstuffs amid a record drought.

According to a government decree signed by Putin on August 5, the ban will extend from August 15 up until December 31, although the powerful premier has indicated it may even extend beyond that date if the harvest is bad.

Russia, the world’s number three wheat exporter last year, has warned that its grain harvest this year will be just 60-65 million tonnes, compared with 97 million tonnes in 2009.

The drought amid the worst ever heat wave in Russia’s history has ruined one quarter of the crops, according to President Dmitry Medvedev.

The export ban is aimed at keeping the Russian domestic market well supplied with grain to prevent sharp rises in prices. Russia’s leaders, acutely nervous of social unrest, will be keen to avoid any discontent over food prices.

“We must not allow an increase in domestic prices and must preserve the headcount of our cattle,” Putin said.

Russia needs 78m tonnes of grain domestically and can cover the shortfall with 9.5m tonnes from a state fund and 21m tonnes from last year’s harvest.