Russia: Authorities are ready to strengthen control over the grain market; how will this affect producers and consumers?

Published 2024년 2월 27일

Tridge summary

The Federal Antimonopoly Service (FAS) of Russia is increasing its scrutiny of the grain market to identify potential collusion between manufacturers, traders, and infrastructure owners, in response to rising bread costs and potential understatements of grain prices. This comes despite a record grain harvest and a 5% increase in the cost of bakery products. The Ministry of Agriculture is open to considering any proposals from the FAS to combat competition violations. Meanwhile, the Russian Grain Union denies the existence of cartel agreements among grain producers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Agricultural holdings can expect tougher control from the authorities - the Federal Antimonopoly Service (FAS) will take into account the State Duma’s recommendation on the need to analyze the grain market for collusion of major players. This is stated in a letter from the head of the FAS Maxim Shaskolsky. If vertical agreements between manufacturing companies, grain traders, as well as owners of ports and infrastructure for storing products are confirmed, the service can begin to develop measures to combat competition violations, experts say. The reasons for such measures are the rising cost of bread and a possible understatement of grain prices during purchases, analysts say. The FAS will take into account the State Duma’s recommendation to conduct an analysis of competition in the grain market, as well as in the segment of grain transportation and storage services in ports, to determine the presence of vertical collusion. This is stated in a letter from the head of the FAS, ...

Source: Zol