After foreign traders left Russia, farmers were forced to sell grain at low prices.
Thousands of Russian farms are on the verge of bankruptcy due to the monopolization of the grain market. This situation arose after the departure of foreign players who left Russia after the start of the war in Ukraine, reports The Moscow Times.
Grain traders buy grain at low prices, and this destroys the economy of farms, said Sergei Lisovsky, a member of the State Duma Committee on Agrarian Issues.
According to him, the reason for what is happening is low competition. “A few years ago there were 400 traders in the country, now there are only three,” complained the deputy. “Wheat export quotas are divided between these three traders, and this situation allows them to twist the arms of the producer.”
According to Lisovsky, bankruptcy mainly threatens small farms with a small margin of safety. “Formally, there is competition among traders in the grain market, but in reality there is none,” the deputy said.
We remind you that the Russian Federation announced record grain exports in August. The largest buyer of Russian wheat in August was Egypt, where 910 thousand tons were sent. Algeria is in second place.
Egypt has entered into a private agreement with the Russian Federation to buy half a million tons of wheat
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.