Introduction of the export licensing to reduce the competitive performance of Russian grains on the global market — RGU


Possible introduction of the licensing of grain export operations proposed by Rosselkhoznadzor will reduce the competitive performance and make a negative impact on realization of the grain export program of the Russian Federation, declared the President at the Russian Grain Union (RGU), Arkadiy Zlochevskiy on January 29.

According to him, there is no point in licensing. The only thing it is going to lead to sooner or later is the fact that the competition rates will decrease. But the reduction of competition has never provided any good results. A.Zlochevskiy did not believe that such regulation would entail any positive results.

At the same time, he reminded that several countries already have such licenses, but all of them are tied up in the export subsidies. The licenses were imposed to pay the export subsidies, but not to limit the number of companies-exporters. But the Russian idea looks another way — it is designed to lower the number of exporters, which will reduce the competition rates.

According to A.Zlochevskiy, previously there were several grain export monopolies in the world. But the majority of such monopolies already expired, due to the extreme inefficiency. It is necessary to step up competition, but not to reduce it.

As a reminder, in mid-January 2019 the Head of Rosselkhoznadzor, Sergey Dankvert reported about the need to introduce licensing of the Russian grain exports to the countries, which have the specific requirements for grain quality and safety.