Russian ministry mulls tightening grain export restrictions
MOSCOW. Jan 25 (Interfax) - Russia's Agriculture Ministry is considering tightening restrictions on grain exports for the period until grain from the new harvest hits the market.
The issue of changing the size of the export duty on wheat was discussed at a meeting held last Friday by Deputy Agriculture Minister Sergei Levin, a source at the ministry told Interfax.
The issue was discussed due to the deterioration of the situation in livestock farming, primarily pig and poultry farming, and the growth of feed costs in these sectors.
"On one hand, livestock farmers' expenditures on buying grain are growing. On the other hand, according to industry unions, households' purchasing power is falling, which ultimately leads to a steep decline in the profitability of pork and poultry meat production," the source said.
After the meeting, Levin issued orders to elaborate the issue of a possible tightening of restrictive measures against grain exports until the new harvest reaches the market by January 29.
It was reported earlier that the Agriculture Ministry plans to submit proposals on the export duty on wheat to the government by the end of January.
Grain prices on the domestic market are rising, despite the decline of prices on the world market due to the ruble's depreciation against the U.S. dollar, grain market analysts say.
The export duty on wheat is currently 50% of the customs value minus 6,500 rubles, but not less than 10 rubles per tonne.