Effects of Export Control Policy on Food Security: The Case of the Grain Market in Russia

Abstract

Abstract: A discussion is provided of the issues arising from a grain export control policy aimed at stabilizing domestic prices and strengthening food security. It is shown that in recent years, the gross grain harvest in Russia has exceeded the total volume of domestic consumption and exports. Russia has repeatedly introduced measures to restrict grain exports in connection with the rise in prices in the domestic market, but these measures have only exacerbated the tensions. It is concluded that export restrictions have little potential to curb food inflation, and they adversely affect the development of the grain sector. It is proposed to focus on alternative methods of stabilizing the situation in the food market. These methods should set the following priorities: ensuring a stable growth and increased efficiency of the grain sector based on its technological modernization, improving the institutional structure, and increasing the efficiency of government policy. Transitional measures could include quotas for domestic supply and targeted food assistance programs for low-income population groups.