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here in the russian capital. headlines now. amid reports of voting irregularities in the polls. as a crucial test of government's ability to ensure stability and fight corruption. one of russia's most wanted men. extradition from terror suspects. was detained in warsaw on friday but later released. campaign trail for the u.s. midterm elections conservatives call for family values to be made a political priority this comes as the country focuses on the ailing economy after the census figures revealed a growing poverty rate. but my colleague and he said no way it will be here in half an hour's time but for the meanwhile we turn to our program spotlight today's focus

is that of the reduction of russia's global grain exports in the wake of this summer's deadly drought and wildfires thanks for watching. wealthy british style. markets why not. find out what's really happening to the global economy cause a report on. how again and welcome to the spotlight. today my guest is out of. the unusually dry and hot summer has destroyed much of this

year's crop and rush the state had to impose restrictions. to keep prices down but what does it mean for the rest of the world will be asking the president how the russian. russia is one of the world's biggest grain exporters but there's some a severe drought has badly affected the harvest in order to maintain supplies of russia has imposed a ban on exports that's boosted world grain process to a two year high and prime minister says the ban may remain in place until the autumn how the next year the u.n. says two years without crushing grain in the market may lead to serious trouble in two thousand and eight. led to food riots in some developing countries.

this is not chesky thank you for joining us welcome to our program. my first question is about something that many people including our audience worldwide are concerned about how. significantly has the russian embargo changed the world grain prices and can it change them and how significant the price shall be if it does very change anything anymore because the change happened already that has this is good news if the ban has already been imposed therefore the lack of our green on the world market has already made it seem practical from now on things can only improve if by any chance they allow exporting their certain amount of grain because this could have a positive impact only them and the world prices would drop slightly. however nobody is expecting russian producers to export significant amounts of grain in the season and we aren't expecting the ban to be lifted on january first as this would

result in automatically equaling off domestic and world prices or is the purpose of the ban was to prevent the address to growth of the local tries is at present the gap between domestic and a world crisis is too big to lift the ban she wanted tiny correctly equal to prices the national community fears the repetition of the food crisis of two thousand and seven which sparked riots and countries from mexico spotlight has more. the worst drought in at least half a century has like to feel of a green shoot each in russia the government has banned their expert to wait for the next twelve months. to protect consumers inside the country since shock through international markets bread prices too much to hear hi it's a reminder of the situation in two thousand and seven and two thousand and eight

when hutu did use to right around the world back then iran thirty countries in closed restrictions on the explant of a good cultural prudent prices soared and. public discontent is believed to have triggered the collapse of governments in haiti and madagascar this year mozambique has become the first country to suffer a food shortage is the government's decision to raise bread prices by thirty percent to riots you know which at least seventy people died and around three hundred were wounded in the violence the price rises were revoked india has had their way to export ban for the last three years it's reported to have good lifestyle and some great stories. disturb the volatility on the global grain market united nations food and agriculture organization is holding an extraordinary meeting on prices next week.

do you think russia's in bargo could trigger a food crisis and underdeveloped countries ones that depend on grain imports do you think the situation in those countries could get out of control again would they blame russia for it. but they know this won't happen in the world has enough resources to compensate for russia's absence on the world market. world's weak stock east march larger now than three years ago when the world indeed faced the problem of food supply. at that time crisis including international ones worth one point five times higher than to d c would. the government imposed the grain export embargo in order to protect consumers from a drastic pries growth within the country how did this decision affect grain producers they must have lost money because of it i mean they would have benefited

from higher prices right. yes of course you're right producers in our southern regions get a rather good harvest in spider. extremely negative weather conditions and they didn't benefit from the embargo. price growth stopped and even reversed. prices have been dropping since the implementation of a ban not by much though but there are still dropping certainly this factor makes grain production less attractive to investors and has a negative effect on their revenues which again is an idea of how much they lost the most calculation in exact amount possible it depends on quite a number of factors such as their investments their nat cost their harvests your knowledge use regions and so forth. and therefore we cannot sum up there are taught to losses however we can tell how much is lost through prices

for instance by the southern federal district of new schools to see ports and therefore insulin just sick expenses are lol so by the time the export van was imposed their price was almost six thousand roubles for one tonne of brain to date has drilled by almost one and a half thousand rubles that's how much they lose in which john and this is quite a lot cheaper to get is that as for the world market the price is grown by at least fifty dollars you mention seaports in southern russia any grain producers dependency ports they exported their grain through those ports but now. they're logistics expenses they're being replaced by costly one such as those crane producers know how to transport their grain to the northern and eastern regions of

russia. is there an efficient infrastructure for that. yes the reason for structural for moving such amounts. regions have about nineteen million tonnes of surplus grain and thirteen million tons in southern russia and six million in siberia. on the other hand the need for grain in the volga region and central russia is about sixteen million tonnes and add a couple of millions for places that traditionally don't produce their own grain like sink petersburg and moscow so in tonsil we need to transport about eighteen million tonnes so that's not a problem for our infrastructure being misty the only problem is with the cost of transport. for instance the region consumers such as mills and ford or factories used to pay for knish half thousand herbals

a tonne. which is the price in the southern ports that is six thousand rubles a tonne minus the coast of transportation bill which is about a thousand in a ham roubles a tonne. but now after the ban they have to pay six thousand euro rubles plus in another fifteen hundred trubel so tonne for transporting grain from the south to the volga region so that's seventy five hundred were bulls if so they prized by three thousand rubles overnight. because of course that's quite a long so now consumers refused buying at such high prices producers in southern russia refused cutting prices they used to export their grain at six thousand and ton another asked to sell it at three thousand so that the molder region can buy it

at the old price self four and a half thousand roubles a tonne so the situation is rather unusual and complicated but we hope that stamps will be. they consume it the president has ordered to cut the logistics expenses you know order to reduce the cost of transporting grain for both consumers and producers. who. understand in response to. the world market will have to adjust and regroup reconfigure itself is going to be used for example you mentioned surplus grain and other producers. don't you think that by the time the ban is lifted our own producers will lose their current position in international markets. and that. depends on how competitive prices are. actually the difficulties we are going to

face are of a different nature i'm not really ward that we would lose our positions on the world market because we only them less than ten years ago and we want them through our load competitive prices because our production cost is low but as long as all farmers agree to low wages we will have better prices than our rivals in europe or america the problem is that russia will now be regarded as an unreliable country we made the decision to ban sports so unexpectedly that the world no longer trusts us and this fact will impact prices consumers would rather pay five dollars. than paying less to us but not having confidence that we will deliver. and it will take us some time to restore a reputation which will be losing money.

this thing down we fail to deliver even the grain that has already been paid for under. existence contracts yes among other things. none of the russian exporters to convey the force mature provision to avoid their losses. they had contracts with egypt and other countries spa stuff so they're old buying grain from other countries and delivering it to customers at contractual prices to fulfill their obligations. because they don't want to risk losing their major customers the point it's updated to keep open but he says out of ideas let us keep president of the russian brain you spotlight will be better shortly after the break we'll continue this interview so stay with us to end up.

close up game has been to the our hangal speak. for the first russian fleet was. goes to the area which holds top position in oil and gas resources. where the biggest russian salmon caviar processing factories located. and where unique species of farm fauna can be found. should close up.

welcome back to the spotlight i'm just a reminder that my guest in the studio today. president of the russian grain. the grain. and. to protect the prices. market. in the world markets the government. and. signing any new contracts but we also fail to even those that were paid for. the only possible solution have been done differently. believe it could have been

handled in a different way i think it was done in too much. i think nothing happened if the deed had been moved from august fifteenth. september first say. changed. both. the existing commitments to be. take this then there would be no problem. behind. this for example. you know the stock exchanges for them any advance information as a way to make more money actually we helped make money by making this decision in such a haste. and the prices surged that they could have been going up smoothly had a we issued a warning some time for preparations in the increase would have been so.

yes of course the way we did it. expected for everyone in the world. price drop by fifty dollars gap. spotlights. trying to find out what do people. think about the situation. there to try to find out if the right thing by building a. market which is. great but. i think it's the right. because we should have an. i don't think we should. think it is the right thing

to do. think it's right because of the situation with the drive for the country there is a shortage of grain. think it's great because. green left. you mean domestic crisis and certainly not into domestic crosses will now depend on the domestic balance that is whether or not we have in our resources to provide for both the current season and the next one currently the prices are falling because

the start of season resources are considerable before january being grain deficient regions will have used up their resources i mean the vulgar regions in central russia will have consumed old their grain and will have to import in the meantime south produced grain is not being sold domestically because some of the informers are dissatisfied with the current prices are expecting kikes and thus the price formation will have to be based on the purchasing prices in the south plus the logistics costs that will have to be. in keeping with the presidential order the government now decides to impose some favorable tariffs for grain haulage this will certainly can seem price growth if not the prices will grow in any event starting from the new year motion is it necessary at all to change russia's pricing

system and thus enhance competition on the grain markets and. frankly speaking i do have a point of view of my own that i've rather often offer to the public in my view it's counterproductive to freeze the prices it's populism and it later has a rather grave authentic to the general situation in the economy as a whole. it's much more productive to fight poverty in the pockets of the people. and for these purposes the world has developed efficient tools that work well. for example the u.s. department of agriculture. spend still lion's share of its budget on food stamps that is food aid cysteine still poor. and this is an alternative to cash. in moscow we have the so-called social. good it also implies some prize

discounts and so on. so we might develop and introduce as social food cards and that would work much better than price containment by containing prices we also subsidize the rich pockets. we must understand that and the rich poor kids aren't much bigger consumers than the poor ones it's automatic they have more opportunities through price containment we spend more money to support the rich pocket then the poor pocket and critic as soon as the vandalism post immediately came up with a cord saying that grain were coming to the domestic market saying the guess traders were expecting demand to be lifted and then wish to sell at prices lower than the world price. are those who pours through judging by what you said earlier

the ground did work and everyone is toeing the line with but that they perceive a different thing. that's exactly what i'm saying i saw them regions are not selling their grain it isn't coming to the domestic market but it's not because they're waiting for the world prices they're not happy with the current domestic prize which has dropped after the ban prices go back to an acceptable level i mean there is no need to bring them up to the world level this makes no sense but everybody understands what social responsibilities even a form is in southern reaches what they want is it fair price which is about six thousand rubles a ton that's the average price for the past half years half years ago that. price was nine thousand rubles a tonne limited in for one and a half years it stayed at the level of slightly more than three thousand rubles a tonne not long ago it went back to six thousand and began falling again as soon

as it heats the six thousand mark all the sales will resume the market will move and things will go back to normal here is what prime minister putin had to say in order to calm down the situation on the domestic grain moch. in order not to create unnecessary anxiety to ensure a stable and predictable business environment full market participants i should note that we can consider the abolition of the grain export ban only off to the next crops have been harvested and there is clarity on the grain balance zigzagging should not be allowed to. so mrs large have skied this situation that we currently have in our hands to what extent can be beneficial for the speculators that people who don't produce anything or. as the british call them the middlemen.

speculators need the market to move otherwise there is nothing they can do and all liquid market is a bad place for speculators at this point in the market is that a standstill the problem hasn't been created by the speculators they have nothing to do with it they want the markets to move on the contrary so what's going on with both was everyone so excited. buckwheat is a separate story which is that we remember all too well the shortage of black wheat in the soviet period as soon as we hear rumors about crop failure sores shortages soar supply problems people rush to buy what can be stored for long buckwheat is among the foods that are so apt on. the shelves in the first place like pastor and flower but pastor and flower were stored in excess at the moment when the rumors began spreading wild maki three servers were not very large but i can say they

were small either and because we had the fortune nine thousand tons of buckwheat in storage as a forest first last year's aug first two reserves in mountain to fifty seven thousand chance the difference isn't very large but because buckwheat is normally purchased in small amounts we don't consume much bucket reserves are small too. so slowly in retail chains in the shops. it's. my last question it's about a. specialist so warning about it we've been brain exports in the world grain prices went up and the need price is dependent again prices russia depends on the need to imports and so prices grow because of our own actions no i don't think so we have a special program to increase domestic production of meat as part of the national project to develop the agricultural industries so by now we can almost cover

a need for poultry and we are making good progress with pork beef is the only meat where we still have some problems but beef doesn't depend on grain cows feed on grass right that so here we have a different kind of problem was the problem is that there is no shortage of green but there is a shortage. strong. so we expect at ten percent shortage of course and forder this year. and this will have to be replaced by grain you know of course grain is you know he's more expansive. to it thank you thank you thank you very much for being with us and just to remind that my guest in the studio today was out of cards he's let cesky president of the russian grain camp and that's it for now from all of us here if you want to have your say on.