Russians fear grain shortage, bread inflation

Russia's government has acted to stabilise the cost of bread, after it jumped by up to 8% in the past two months. Duties on grain exports have been increased this week.

Russia's government has acted to stabilise the cost of bread, after it jumped by up to 8% in the past two months. Duties on grain exports have been increased this week.

Russian grain exporters now have to pay €22 for each tonne of wheat they take out of the country and €70 per tonne of barley.

However grain exporters say there is no shortage of cereals on the domestic market and warn the measures could mean losses for Russian farmers.

The government believes the duties will counter grain shortages on the domestic market and hold down prices.