Sergei Lisovsky: Export duties on grain are killing the Russian agricultural industry

Grains, Cereal & Legumes

Regulation & Compliances

Market & Price Trends

Published Mar 28, 2024

Tridge summary

Sergei Lisovsky, the deputy chairman of the State Duma Committee for Protection of Competition, has raised concerns about the adverse effects of export duties and price disparities on the Russian agricultural sector. He argues that these measures are diminishing farmers' profits and could cause long-term harm to the industry. Lisovsky criticizes the government's current strategies for managing grain prices and export quotas, which he believes favor large traders over small farmers, thereby reducing competition and discouraging grain production. He advocates for a return to a more inclusive approach to export quotas, similar to the method implemented three years ago, to address these issues.

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Original content

Price disparity in food markets leads to a decrease in the profitability of the Russian agricultural industry. Export duties do not provide any benefit to the manufacturer and are literally destroying the industry. This opinion was expressed in an interview with MK by Sergei Lisovsky, deputy chairman of the State Duma Committee for Protection of Competition. “The situation may become irreversible. And the government will have to pay tens, maybe hundreds of times more to restore lost ground. If a peasant leaves the land, he will never return,” the expert noted. The introduction of the duty itself was motivated by the need to maintain balance within the country, recalled Sergei Lisovsky. According to the market conditions at that time, it turned out that with a world grain price of $200 per ton, the rate would be zero. And if the price rises, then the farmer gets 30% of the price, and 70% goes to the state. - Perhaps, at some point, the ministry decided that it was possible to ...

Source: Rosng