A State Trading Enterprise for Grains in Russia? Issues and Options
The impact of state trading enterprises (STEs) on domestic and international grain markets has been studied extensively over the years, generating a considerable body of theoretical and empirical evidence. The aim of this note is to draw on this bo...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2009/10/11742343/state-trading-enterprise-grains-russia-issues-options http://hdl.handle.net/10986/18899 |
| Summary: | The impact of state trading enterprises
(STEs) on domestic and international grain markets has been
studied extensively over the years, generating a
considerable body of theoretical and empirical evidence. The
aim of this note is to draw on this body of evidence to
analyze possible options for Russia's future state
involvement in grain trade. The note covers the following
three parts: i) outline of the potential economic impacts of
STEs in grain trade from an economic perspective; ii) review
of some of the global experience with STEs that are involved
in grain exports; and iii) evaluation of options for state
involvement in grain trade in Russia. The coverage in this
note is limited to grains and to the impacts of STEs in
countries that are net exporters of grain. Of the major
grains, the note focuses on wheat which is by far the most
important Russian export grain. Importing STEs are much more
numerous than exporting STEs worldwide. However, unlike
Ukraine, which has jumped between net export and net import
situations for wheat as recently as 2003/04, it appears that
Russia has become a consistent exporter since the beginning
of this decade, even in years with relatively poor crop
conditions. The note is further limited to the analysis of
STEs and not grain market regulation in general (i.e. market
and price support, income support for grain producers).
However, as is discussed, such regulation can be used to
help an STE pursue certain objectives by enhancing its
market power, and STEs are generally implemented as part of
an overall grain market regulation strategy. |
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