Russian president's drive to tame food prices threatens grain sector

Russian President Vladimir Putin faced questions from a viewer, Valentina Sleptsova, about the high food prices in Russia during a televised session, with Sleptsova pointing out the absurdity of bananas from Ecuador being cheaper than locally produced carrots. Putin acknowledged the issue of high food prices, which he blamed on global price increases and domestic shortages, and stated that the government was taking steps to address it. However, these measures, including a permanent tax on wheat exports and retail price caps on other basic foodstuffs, have attracted criticism for potentially harming Russia's agricultural sector and leading to unpredictable supply and pricing in export markets, which could result in Russia losing its share in these markets. The situation is particularly challenging for older Russians on small pensions, as they struggle with rising consumer inflation and high food prices. The upcoming parliamentary elections in September are expected to further impact the political dynamics, with the government facing pressure to address these economic concerns while also dealing with the effects of the COVID-19 pandemic on the global market and domestic economy.