Russia should set up a state corporation to tighten control over grain exports, Russian news agencies quoted Agriculture Minister Alexei Gordeyev as saying on Saturday. Gordeyev did not say if the corporation would have a monopoly on grain exports. Russian officials are trying to keep more grain inside the country to combat a sharp rice in prices for foodstuffs that is driving up inflation.
"In my view, the state should consider now the question of creating a state corporation, or a major corporation with state involvement, to export grain," RIA news agency quoted Gordeyev as saying.
Russia's agriculture ministry forecasts a grain crop in 2007 of 80 million tonnes, giving the country 12 million tonnes of grain for export in the current season. Most Russian grain exports are handled by major international traders, though a few large Russian companies are also active in the market.
Russia wants to drive down food prices by releasing some of the state's grain stocks, but officials are concerned that without additional export controls, the additional volumes will be sold outside the country.
As part of the government's anti-inflationary measures, Gordeyev said this week that wheat and barley exports are likely to become subject to export duties from mid-November, and restrictions on wheat could be toughened early next year.