The agriculture ministry may discuss a halt in supplies with producers this week, the outlet reports
© Sputnik / Vitaly Timkiv
Russia’s agriculture ministry may advise producers of sunflower oil and wheat to temporarily suspend exports due to a sharp decline in global prices, Vedomosti business daily reported on Thursday, citing sources familiar with the issue.
Over the past week, sunflower oil prices dropped from $1,100 to $800 per ton, while sunflower wheat fell from $600 to $395 per ton.
The regulator plans to discuss export restrictions at a meeting with producers this week, the outlet said, citing Deputy Agriculture Minister Oksana Lut. One of the exporters of vegetable oil who spoke to the newspaper confirmed the information about the planned move.
However, a ministry representative said a separate meeting with sunflower oil producers had not been scheduled, adding that “issues of product sales lie within the competence of the business.”
READ MORE: Russia warns of future global oil shortage
According to agrarian analytical agency Sovekon, Russian wheat was trading below $300 per ton in early March for the first time since 2021. One of the exporters said wheat prices had slumped to $280-$275 per ton, while contracts for May and June were being offered at $250 per ton.
The head of Sovekon, Andrey Sizov, blamed the international banking crisis for weaker sunflower oil and wheat prices. The collapse of several US banks has triggered a drop in crude oil prices, which contributed to a decline in the cost of food stuffs on global markets, he claimed, adding that he believes this trend will be short-lived.
For more stories on economy & finance visit RT’s business section
