Lower food prices in Russia may have a negative impact on the situation around the world, according to experts from Germany.

In their opinion, the statements made by the Russian president and the government regarding the cost of food products have far-reaching consequences. Thus, experts assume that Russia will impose duties on grain exports, which will lead to higher wheat prices worldwide.

Last week, the Russian President called the rise in price of basic foodstuffs unacceptable, as the pandemic has deprived many people of their incomes, while some of them have lost their jobs. To this end, he instructed the government to take action. Towards the end of the week, maximum prices for sugar and sunflower oil were announced.

According to the media, fears of German experts have already started to come true, since imposition of export duties on grain is being discussed not only by the market players, but also by the authorities. According to some sources, the duty may amount to 25 Euro per ton. It could be introduced on February 15 next year.

It is noted that while the global community is expecting such innovations with caution. Local livestock breeders and processors in Russia, on the contrary, are waiting for such measures, as many have already experienced how rising grain prices have substantially increased the cost of feed. They expect that lower export rates will stabilize grain market inside the country.

Made in Russia // Made in Russia

Author: Ksenia Gustova