Eduard Zernin, the head of the Union of Grain Exporters, has raised concerns over the effectiveness of Russia's strategy to manage its grain surplus by purchasing grain into the state's intervention fund. He argues that this approach might not solve the surplus issue and could instead reduce elevator turnover by using up capacity needed for exports. Zernin suggests that the focus should be on boosting grain sales, despite challenges such as strained export infrastructure and the need for significant investment to expand it. He also criticizes the use of quotas and duties for not effectively limiting exports, which has led to a decrease in global grain prices. Furthermore, Zernin warns of a potential decline in international demand for Russian grain due to increased competition and domestic production in importing countries. He proposes that developing internal grain processing could be a more sustainable solution by adding value to the grain and potentially reducing the burden on the intervention fund.
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Original content
Purchasing grain from Russia into the state intervention fund may partially rid the domestic market of surpluses, but will not completely solve the problem. As Rossiyskaya Gazeta writes, this opinion was expressed by the head of the Union of Grain Exporters Eduard Zernin. Moreover, the expert believes that an increase in government procurement will lead to the filling of in-demand elevator capacities and a decrease in their turnover. In his opinion, in order to comprehensively resolve the issue of getting rid of surpluses, it is necessary to increase grain sales. However, he noted that there are some nuances here too. For example, the country's existing infrastructure for grain supplies abroad is currently operating at the limit of its capabilities. Further expansion of export capacity will require serious investments and a lot of time, Zernin noted. Read also Most of Russia's 2023 wheat harvest is recognized as fourth class The head of the union also noted ...
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