“BRICS” deals a “severe blow” to grain exporters in the West

Russia – Russia intends to establish a grain trade exchange for the BRICS countries, which will have repercussions on the global agricultural market, according to a report by the South China Morning Post.

The move will strengthen Russia’s position as a major supplier of grains in the world, and will increase the food security of the BRICS countries, which include Russia, China, Brazil, South Africa, India, Saudi Arabia, the UAE, Egypt, Iran and Ethiopia.

In an indication of the importance of the BRICS countries in the global grain market, last year the group’s countries accounted for about 42% of global grain production, or about 1.2 million tons, in addition to the fact that the BRICS constitute 40% of global consumption.

The authors of the report stressed that the establishment of the stock exchange will have a positive impact on the West, as the trading of grain contracts within the framework of the BRICS group will enhance the geographical and economic influence of Russia and its allies in the group, which may lead to changes in global power.

The report expected that grain and fertilizer exporters will face increasing competition from BRICS countries, and traditional grain exporters such as the United States, Canada and Australia will face difficulties in maintaining their market share.

Last February, President Vladimir Putin stated that Russia leads the world in wheat exports, and is in the middle of the twenty food exporting countries in the world.

He stressed that Russia will maintain its position in the global wheat market this agricultural year (2023/2024), and will be able to provide about 60 million tons of wheat to global food markets.

Source: Prime