Russia increases grain tariffs by 40%
The Russian government has increased grain export tariffs by 40% to force wheat and barley producers to sell more at home. Russian exporters are not happy with this decision as they have just wowed foreign investors at the world’s biggest agriculture fair in Berlin.
Food Fair with the largest exhibition, and record attendance figures. However,
at the fair, Agriculture Minister Aleksey Gordeev told reporters that the entire
industry had effectively missed a decade of progress. But some believe this
opens up unique opportunities.
“Food quality, not marketing, is our
number one business concern. We’ve started negotiations today with our German
colleagues to learn from their experience of producing organic food. We believe
this sector has huge untapped demand,” Aleksey Gordeev said.
Russia’s
agriculture industry remains one of the most heavily state-regulated in Europe.
Experts say the government can use that power to block the free market with
tariffs, or direct its current wealth to push through innovations like organics
and build on its reputation for healthy, chemical-free food.
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(Source: russiatoday.com)
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