World Grain - February 2021 - 26

grain export restrictions

TAKING TOLL
Central Asian countries dependent on Russia and the region's
other grain-rich nations are facing food insecurity

G

rain export restrictions embarked on by
Russia and Kazakhstan during the first few
months of the COVID-19 pandemic brought a
hiatus upon the food supply chain in several countries
in 2020. A big question now is whether 2021 will be
any better.
The Kazakh export restrictions had the potential to
doom the country's neighbors to starvation, local market participants claimed in March 2020. Now, almost
a year into the pandemic, the fears over food security
in some countries keep mounting since new export restrictions continue to drive prices up.
Russia's Economic Development Ministry recently
submitted a proposal to the government to impose a
wheat export tax of 25 euros ($30) from Feb. 15 to
June 30, Economic Development Minister Maxim
Reshetnikov said at a recent government meeting.
The quota is proposed to be set at 17.5 million
tonnes for the same period, 2.5 million tonnes above
the original plans. Above the quota, export supplies
would be subjected to a 50% tax, not lower than 100
euro ($125) per tonne. The quotas are needed to stabilize the price situation on the domestic grain market,
which has seen rising prices recently, he explained.

26	

WG_Feb21.indb 26

" Russia was expected to export 51 million tonnes
of grain, including 40 million tonnes of wheat in the
2020-21 season, but the introduced export tax is likely
to curb these figures, " said Arcady Zlochevsky, president of the Russian Grain Union.
In light of the export tax introduction, Russian grain
becomes less competitive on the global market. For
instance, at the GASC tender in Egypt, Russian wheat
exporters lost for the first time in six months to some
Ukrainian and Romanian suppliers. Russian analysts
pointed out that the Russian wheat was always attractive pricewise, but now it is more expensive than that
of other Eastern European countries, which is a warning sign.
Although Kazakhstan and Ukraine have announced
no quotas, grain supplies in Central Asia are likely to
be tight, unleashing serious problems for some of the
local economies.
Turkmenistan struggles with grain shortage
In Turkmenistan, the 2020 harvesting campaign turned
out to be extremely tense, as the government had to
deploy law enforcement to grain harvests to prevent
farmers from hiding grain, according to the Vienna-

©Porcupen - stock.adobe.com

by Vladislav Vorotnikov

February 2021 / World Grain / World-Grain.com

2/12/2021 8:30:40 AM


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World Grain - February 2021

Table of Contents for the Digital Edition of World Grain - February 2021

World Grain - February 2021 - 1
World Grain - February 2021 - 1
World Grain - February 2021 - 2
World Grain - February 2021 - 3
World Grain - February 2021 - 4
World Grain - February 2021 - 5
World Grain - February 2021 - 6
World Grain - February 2021 - 7
World Grain - February 2021 - 8
World Grain - February 2021 - 9
World Grain - February 2021 - 10
World Grain - February 2021 - 11
World Grain - February 2021 - 12
World Grain - February 2021 - 13
World Grain - February 2021 - 14
World Grain - February 2021 - 15
World Grain - February 2021 - 16
World Grain - February 2021 - 17
World Grain - February 2021 - 18
World Grain - February 2021 - 19
World Grain - February 2021 - 20
World Grain - February 2021 - 21
World Grain - February 2021 - 22
World Grain - February 2021 - 23
World Grain - February 2021 - 24
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World Grain - February 2021 - 26
World Grain - February 2021 - 27
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http://digital.world-grain.com/sosland/wg/2009_09_01
http://digital.world-grain.com/sosland/wg/2009_08_01
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