News in brief:
– Russia to maintain high grain export quota, boosting global food security.
– Its surplus grain reserves and continued logistical capabilities despite the ongoing war in Ukraine helps keep its crown as world’s top wheat exporter.
Russia intends to maintain its seasonal grain export quota at a substantial level, which will mean that shipments will continue.
The Kremlin’s decision follows a series of record-breaking grain harvests in Russia, solidifying its position as the world’s leading wheat exporter.
The proposed quota for the second half of the season, spanning from February 15 to the end of June, is set at 24 million tons, according to a news coverage quoting First Deputy Agriculture Minister Oksana Lut.
Despite this high quota, it appears that Russia’s overall grain exports will not be affected, reflecting its surplus grain reserves and continued logistical capabilities, despite being at war with Ukraine and the treacherousness of the Black Sea route.
Also, Russia typically employs export quotas to safeguard domestic grain supplies. Thus, the decision to maintain a high quota points at its desire to maximise export revenues and capitalise on the global demand for grains.
International grain buyers will not be complaining about Russia maintaining a high grain export quota as it is expected to ease the strain caused by the ongoing supply chain disruptions and concerns over global food security. With Russian grain continually flowing, price stability is all but assured.
