Russia bans grain exports amid crippling drought

A government ban on Russian grain exports came into force Sunday, with authorities fighting to keep down prices of basic foodstuffs amid a record drought. Russia meanwhile reported success in reducing fires burning close to its main nuclear research centre near Moscow, but winds brought smog back to the capital.

Reuters

According to a government decree signed by prime minister Vladimir Putin on 5 August,
the grain ban will extend from 15 August to 31 December.

It may even extend beyond that date if the harvest is bad.

It's already warned that its grain harvest this year will be just 60-65 million tonnes, compared with 97 million tonnes in 2009.

The drought, in the middle of the worst heatwave in Russian history, has ruined one quarter of the country's crops.

With the export ban, Russia’s rulers hope to keep the domestic market well supplied with grain and prevent sharp rises in prices.

Grain export bans are also planned by neighbouring Ukraine and Belarus.

Last year, Russia was the world's third-largest wheat exporter, shipping out 21.4 million tonnes of grain. It had even embarked on a major new campaign to boost its international market share.

Russia requires 78 million tonnes of grain domestically and can cover the shortfall with 9.5 million tonnes from a state fund and 21 million tonnes left over from last year's harvest.

The Russian export ban has sent prices to a two-year high and sparked worries of a crisis in global food supplies.