The government to introduce quotas on grain exports

The government decided to introduce quotas for grain export, as government representatives reported yesterday. Although exact quota size is still not defined, it may equal as much as 4 mln mt, according to market speculations. The quota allocation mechanism is not known yet either. Some suggest an auction with a starting price of USD 30 per 1 mt of exported wheat. Nonetheless, the biggest grain traders are against the auction mechanism and would prefer quotas to be allocated proportionally to previous years’ export volumes. The government does promise to abandon export limitations as soon as state grain reserves are filled.