Russia may limit grain exports this year

The Russian government is looking into the possibility of limiting exports of grain, primarily of wheat, as a way of curbing inflation, and could decide to do so as early as September 13.

Grain sales from state reserves should stop the rise in bread prices and the government included them in its package of anti-inflation measures.

Experts explain the steep surge in prices by poor harvests in Europe, Canada and Australia.

Apart from that, Ukrainian authorities imposed a restrictive duty on wheat exports in June, with Ukraine being the world's sixth-largest grain exporter.

Therefore, if Russia (which is the world's fifth-largest grain exporter), limits grain supplies, wheat prices may hit a new high.

"There is an opportunity to limit [grain] exports. A special working group has been set up by the Russian Agriculture Ministry to conduct consultations on these issues," said Arkady Zlochevsky, president of the Russian Grain Union.