During the Soviet era, Russia was a gross grain importer and over the last few years the country has grown as the largest grain exporter. Through the new food policy Russia seemed to have set an achievable target as grain exports to other countries are expected to reach 38mn tons by 2015.

Russia during the World Grain Forum in June, 2009 had initiated a food security tie up with the largest wheat consuming states such as India, China and Turkey to build wheat reserve stocks as well as to cushion future price slides, which has been faced by Russian farmers today. Despite the second-best year for exports and increasing demand from livestock farmers, grain prices still remain low on account of high domestic grain inventory.

Viktor Zubkov, the first Deputy Prime Minister of Russia during the Forum had urged foreign investors to develop the 20mn hectares of unused arable land in Russia. The country’s wheat production has crossed 65mn tons, and has set eyes at producing 100mn tons this year despite sinking wheat prices.

In a last week’s report by RIA Novosti, it stated meat production in Russia was also witnessing significant growth over the past few years. Agriculture Minister Elena Skrynnik while she met Medvedev informed domestic meat production grew 14 percent to 3.3mn tons last year, reducing imports by 20 percent.

Similarly, though Russia is short of poultry production, the recent ban on the US poultry is intended to stimulate domestic poultry production. Russia banned imports of the US chlorine-treated poultry as of 1 January on non-compliance to country’s safety standards, a decision likely to hike domestic poultry prices.

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According to Pakistan’s food and agriculture ministry, bringing higher acreage of land under cultivation and perfect climatic conditions have helped the country to hope for a higher yield this year around. Pakistan consumes about 22mn tons of wheat per annum, farmers are expecting a bumper crop this year at about 24mn tons.

On the other hand, bumper harvests consecutively for the second year have assisted India to augment its stockpiles for about 30mn tons until early this month, increasing by two-thirds from a year ago. India procures its wheat from farmers for a minimum floor price of $225 per ton. The floor price is fixed for wheat and several other crops to the farmers to avoid incurring losses in case of lower yields or crop failures.

While India offloads 2mn ton surplus wheat, about half a million ton of Pakistani wheat would be heading to the Gulf region and Afghanistan. Pakistan is allowing wheat exports after the procurement of the same reached 8mn tons this year, the highest in seven years.

Indian traders are expecting a subsidy from the government to sell wheat and wheat products for a competitive price as international wheat prices is lower or about equal including cost and freight to the Southeast Asian region. Nevertheless, the wheat traders will export to their neighbouring countries including Bangladesh and Nepal since they are closer to the wheat procurement sites of the bordering Indian state, Bihar. Trade Secretary G.K. Pillai said exports would be allowed through select ports to keep a check on how much wheat was being exported.

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