World Grain - December 2010 - 43
FEATURE
World Bank:
Russian grain ban ineffective
R
ussia's decision to ban grain exports through June 2011
will likely not lower domestic prices and could have
significant negative impacts on the industry, the World
Bank said in a November report on the Russia's economy.
The Russian government on Aug. 5 issued a temporary ban
from Aug. 15 to Dec. 31 on grain exports in response to rising grain prices brought on by a drought-induced shortfall. The
ban on wheat, barley, rye and maize was extended to June 2011
while a ban on flour was not lengthened beyond the end of 2010.
It was hoped the ban would protect Russia from rising grain
prices by reducing grain exports to 3 million tonnes from the
nearly 15 million tonnes initially projected for 2010-11.
According to the Oct. 20 estimate, Russian farmers harvested 62.3 million tonnes of grain in 2010, a drop of 36.8%
from 2009. Given production estimates and a domestic consumption estimated at 78 million tonnes, the World Bank said
Russia will become a net importer of grain, depending on the
use of reserve stocks. Grain stocks are estimated at 26.3 million tonnes as of July 1; 9.6 million is part of the government's
grain intervention fund.
by Susan Reidy
Ban on grain exports not reducing
domestic prices, could hurt industry
Due to these circumstances, the World Bank said the export
ban will be ineffective in lowering domestic prices because
they will continue to be influenced by world grain prices.
Several unintended and undesirable side effects could occur because of the ban, the World Bank said. These include
undermining Russia's long-term goal of becoming an important player in the global grain market; encouraging hoarding
in anticipation of the ban removal; and distorting prices and
affecting the investment and production responses.
ALTERNATIVE SOLUTIONS
The World Bank suggested alternative solutions for the
short and long term. In the short term, it suggested using
Extruder OEE
Flexible shaping
of different products
AMANDUS KAHL GmbH & Co. KG, Dieselstrasse 5-9, D-21465 Reinbek / Hamburg, Phone: +49 40 727 71 0, Fax: +49 40 727 71 100
info@amandus-kahl-group.de, www.akahl.de
For more information, see Page 78.
44
December 2010 / World Grain / www.World-Grain.com
http://www.akahl.de
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World Grain - December 2010
Table of Contents for the Digital Edition of World Grain - December 2010
Contents
World Grain - December 2010 - 1
World Grain - December 2010 - 2
World Grain - December 2010 - 3
World Grain - December 2010 - Contents
World Grain - December 2010 - 5
World Grain - December 2010 - 6
World Grain - December 2010 - 7
World Grain - December 2010 - 8
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World Grain - December 2010 - 11
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