NATALIA SHAGAIDA: “RF FACES NO RISKS LOSING ITS POSITION IN THE WORLD WHEAT MARKET"
As long as the incomes of Russian wheat producers cover their costs, grain exports will not decline. This was expressed by Natalia Shagaida, Head of Agrarian Department of the Gaidar Institute, to the IA REGNUM reporter. She commented in such terms on the forecasts of Bloomberg experts, who assumed that Russia risks losing its dominant position in the world market due to grain export duties.
“Russia produces more grain than required to meet local needs, and all surplus must be exported. Therefore, a reduction in the supply of wheat for export should not be expected. As for export duties that slightly reduce business economic viability, it should be remembered that, as a rule, grain exporters are not the ones who produce it. As long as revenues cover the costs of producers, production will not decline. Producers will weigh, evaluate and plan their activities based on world prices, costs and the degree of duty compensation.”
For this purpose, she focused on Russia's competitiveness in the world market that can only drop compared only to those countries where duties on grain exports do not exist.
“However, there may be other restrictions, for example, self-containment in terms of volume. It is not the ranking position that is important for the economy, rather it is the incomes of producers sufficient for their development, and availability of their products for domestic consumers,” the expert concluded.
Friday, 20.08.2021