05.05.2025, Moscow.
In May, Russia plans to develop a strategy for creating a grain exchange within the BRICS framework, said Minister of Agriculture Oksana Lut during a visit to an agricultural enterprise in North Ossetia, as reported on May 5 by INTERFAX.RU.
During her speech at the meeting, Lut said that “we have already discussed possible approaches together with the Russian Central Bank. Because there are different options for forming the BRICS exchange.”
She pointed out that at the moment there are several possible paths. “In May, we will have to choose a strategy, and we have high expectations that in June at the forum in St. Petersburg we will be able to discuss these issues with our foreign partners from the BRICS countries.”
She recalled that a working group had been established in Russia to deal with the issue of the BRICS grain exchange.
As previously reported, Russia proposed the creation of a BRICS grain exchange. This initiative was supported in the Kazan Declaration adopted at the BRICS summit in October 2024.
The declaration mentions the creation of a BRICS grain exchange that will be engaged in raw material trading and its further development. In the future, it is planned to expand the exchange’s activities to include other sectors of agriculture.
According to the Union of Grain Exporters and Producers, the volume of transactions with agricultural and related products on this exchange could reach more than $1 trillion in the future.
The need for such an exchange arises from the fact that the current structure of the global grain market was formed after the end of World War II, when the United States became the main supplier of wheat and corn. Market benchmarks, including those used by BRICS countries, are based on prices for grain crops set on the Chicago Mercantile Exchange (CME).
The primary settlement unit is the U.S. dollar. BRICS countries, being key players in the global grain market, are not able to fully influence the pricing of essential agricultural crops such as wheat, barley, and corn. Global prices for these products are formed in third countries and are often subject to manipulation.
A possible solution to this problem could be the creation of a common trading and clearing system within BRICS, which would allow for grain exchange operations between companies from member countries.
Source: Rossa Primavera News Agency
