Russia Extends Grain Export Ban

MOSCOWIn a move to stabilize Russias grain market, Prime Minister Vladimir Putin announced the extension of the grain export ban by another few months beyond the original deadline, reported The Moscow Times. Putin said the measure was an effort to remove "unnecessary nervousness" and prompt grain business players to "target the demands of the domestic market."

On Aug. 5 Russia banned grain exports from Aug. 15 through Dec. 31, 2010, because a severe drought and wildfires destroyed approximately 20 percent of the countrys wheat crop. The Russian Agriculture Ministry also cut its grain forecast for 2010 from 90 million tons to less than 75 million tons.

"We are seeing that grain is being held in anticipation of the next steps," Putin said, adding that the government would not consider removing the export ban until after the collection of next year's harvest. "We can't allow any back and forth here."

According to the Moscow Times, farmers normally end harvesting late grain crops in October, which means the export ban might be in place until next fall. Agriculture Minister Yelena Skrynnik said Russian farmers will need to harvest 85 to 90 million metric tons of grain next year to stabilize its domestic grain market.