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watching our see why from moscow omnis now with recap of the headlines parliamentary elections in afghanistan have been marred by deadly blasts and reports of voting violations the polls are being seen by many as a crucial test of the afghan government's ability to ensure stability and fight corruption. one of russia's most wanted man awaits a court decision on his action titian from poland tarasoff back on meds acquired was detained in warsaw on friday but later released. and on the campaign trail for the us mid-term elections conservatives call for family values to be made a political priority this consequence. focus is on the elena come to me after census figures reveal a growing poverty rate. spotlight is next here on r t 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.

for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers. wealthy british style holds. the. markets why not scandals. really happening to the global economy because a report on. how again a welcome to spotlight. on r.t.e. . 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 on exports 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 hold the next year the u.n. says two years without crushing bringing the market may lead to serious trouble in two thousand eight. hundred.

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

automatically equaling off domestic and world prices your purpose of the ban to prevent addressed to growth of the local tribes is at present the gap between domestic and a world crisis is too big to leave the ben she wanted tiny correct would equal the prices the national community fears the repetition of the food crisis two thousand and seven which sparked riots and countries from mexico spotlights. more. the worst drought in at least half a century has a way of agreeing surety in russia the government has been there. for the next twelve months. to protect consumers inside the country since shock through international markets bread prices. high it's a reminder of the situation in two thousand and seven and two thousand and eight

when did you. two right around the world back then iran thirty countries imposed restrictions on the export of agricultural products 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 richard only 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 the united nations food and agriculture organization is holding an extraordinary meeting on the crisis next week. do

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

higher prices right and yes of course you're right producers in our southern regions that are rather good harvest in spite of 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 the ban not by much though but there is still dropping certainly this factor makes grain production less attractive to investors and has a negative effect on their revenues it's a good idea of how much they lost most calculation in exact amount possible it depends on quite a number of factors such as their investments their nat cost their harvests to colleges regions and so forth. and therefore we cannot sum up their taunts

a lawsuit however we can tell how much is lost through prices for instance but the southern federal district is close to seaports therefore it's a logistical expenses or lol so by the time the export ban was imposed their price was almost six thousand roubles for one ton of brain to date has drilled by almost one and a half thousand rubles and that's how much they lose you know it's done and this is quite a lot it's a bit of it is just what the world market the prices carone by at least fifty dollars you mentioned seaports in southern russia many grain producers dependency ports they exported their grain through those ports but now. there are just six expenses they're being replaced by costly one such as those crane producers now have to transport their grain to the northern and eastern regions of

russia. that is there an efficient infrastructure for and that's that's that's yes the reason for structural for moving such amounts regions have about nineteen million tons 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 and so on 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

for their factories used to pay for and a 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 and a half rubles a tonne. but now after the ban they have to pee 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 so they prize three thousand rubles overnight. of course that's quite a long at so now consumers refused buying at such high prices and were as 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 boulder

region can buy. at the old price self four and a half thousand or. so the situation is rather unusual and complicated but we hope that stamps will be taken soon the president has ordered to cut the logistics expenses you know order to reduce the cost of transporting grain for both consumers and producers. as i understand in response to. their world markets 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 but. it depends on how competitive prices are. actually the difficulties we are going to

face are of a different nature i'm naturally 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 more to our rivals than paying less to us but not having confidence that we will deliver. and it will take us some time to restore our reputation

during which we will be losing money. could it. be saying that because of the bound we fail to deliver even the grain that has already been paid for their existence contracts yes among other things. none of the russian exporters to can bend the force majeure provision to avoid their losses would they had contracts with egypt and other countries support stuff so no they were 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 with dog poop it's a pit that can cope but he says out of these let us keep president of the russian great news spotlight will be back shortly after the break we'll continue this interview so stay with us tend to.

lose please to be just paradise center. for the military presence which occupies almost two thirds of the audience temperature and overshadows the people's everyday lives. of all the sound so people could use or laugh cause they would. be it is worth every minute of struggle .

welcome back to the spotlight i'm just a reminder that my guest in the studio today is. the president of the russian grain union we're talking about the grain employ imposed by the russian government. to to protect the prices on the internal part market i suppose much of this is like. you said the baron here our partners and what's most important our reputation on the world markets the government imposed the bounds as was a force majority and we not only avoid signing any new contracts but we also fail

to honor even those that were paid for do you think it was the only possible solution couldn't it have been done differently. i believe it could have been handled in a different way i think it was done in too much for us i think nothing terrible would have happened if the embargo date had been moved forward from august fifteenth clicked up with. september first say but what would have changed would have been soft on our partners sure more and both the world and our all market we were going to push forward with that we should have enabled the existing commitments to be profound in only a thing and take this step then there would be no problem. but possibly there was some secret plan behind the suddenness with for example not to let someone make extra cash or some thank you know the stock exchanges for them any advance information as a way to make more money and actually we helped make money by making this decision in such

a haste their world markets reacted instantly and the prices surged. they could have been going on. a warning some time for. the increase would have been so. yes of course. we did it was expected for everyone it is a result the world. price drop by fifty dollars and now we have this gap. spotlights. trying to find out what do people in the streets think about the situation. let's take a look. there to try to find out if the right thing by banning. the market would. bring prices but. i think it's the right. grain exports because we should have enough. i don't think we

should keep. think it is the right thing to do. first. i think it's right because of the situation with the drive over the country there is a shortage of grain. i don't think it's right because the shortage is simply made up and green left. it. up. you mean the domestic crisis certainly not in the domestic process 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 at the start of season resources are considerable before january 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 farmers are dissatisfied with the current prices are expecting kayaks and thus the price formation will have to be based on the purchasing prices in the south plus the logistic costs that will have to be paid if in keeping with the presidential order the government now decides to impose some favorable tariffs for grain haulage

that this will certainly can seen 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. 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 effect on the general situation and 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 spends still a 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 price 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 pockets are a 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. kirk as soon as the van was imposed and they needed a came up with a record saying that crane was coming to the domestic market saying because traders

were expecting demand to be lifted and didn't wish to sell at prices lower than the world price. are those who pushed through judging by what you said earlier the ground did work and everyone is toeing the line with the day for say a different thing. that's exactly what i'm. saying southern regions are not sawing 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 yes if 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 a fair price which is about six thousand rubles a tonne that's the average price for the past half years half years ago the 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 roubles

a tonne not long ago it went back to six thousand and began falling again as soon as it hits 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 some necessary 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. so says large of ski this situation that we currently have in our hands to what extent can be beneficial for the speculators the people who don't produce

anything or. as the british call in the middle men. speculators need the market to move otherwise there is nothing they can do and all we could more. it 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 market to move on the contrary so what's going on with both quiett 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 in soon as we hear rumors about crop failure is sort of shortage a source supply of problems people rush to buy what can be stored for long she's buckwheat is among the foods that are swept off 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 moch which are in service 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 father's tourist last years august first 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 michelle for reserves or small to. sell slowly in retail chains and shops but it's. my last question it's about a move or anything of the specialist so warning about things we've been draining exports in the world grain prices went up the need prices depend on the grain prices russia depends on the need to imports this 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 our a need for poultry and we are making good progress with pork beef is the only meat where we still have some problem. but beef doesn't depend on grain. feed on grass right so here we have a different kind of problem the problem is that there is no shortage of green but there is a shortage. so we expected a ten percent shortage. and reach 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.