No Rain and No Grain in Russia this summer

Moscow - Wild fires, record heat, and drought have caused hardship in Russia this year. Just when the heat wave was over, and forest fires lessening, more wild fires sparked off damage.

Moscow Times recently reported 500 homes had been burned and 8 people killed. Prime Minister Putin has promised compensations, $33 million to each of the strickened regions, reports Moscow Times.

Fires fanned by high winds and months of drought destroyed more than 500 buildings in at least 26 villages in the Volgograd and Saratov regions, injuring at least 17 people, Emergency Situations Ministry spokeswoman Yelena Chernova said.

The lack of rain also caused drought to grain fields, ruining crops. In light of this, Prime Minister Vladimir Putin placed a ban on all flour and grain exports. With Russia being the third largest export of grain, the question is would this cause a global crisis? Russian Deputy Agriculture Minister Alexander Petrikov said that the market has enough reserves.

“There shouldn’t be any panic,” Petrikov said in an interview in Moscow today. “The global market has enough reserves,” Petrikov said.

Still, some try to make money on other people’s misery. To avoid jacked-up in prices by wholesalers, PM Putin ordered a ban on flour and grain exports until next year. According to Business Week, wheat prices have soared 74 percent from a three-year low, following drought in Russia, flooding in Canada and parched fields in Kazakhstan and the European Union ruined crops. The prospects of higher food prices have sparked riots in Mozambique. The USA, however, has harvested a higher than usual grain crop this year. Moscow Times reports on the Russian crop reserves.

This year's harvest is expected to come in at just 60 million to 65 million tons as a result of a weeks-long heat wave.

Medvedev reiterated the government stance that the harvest would be sufficient to meet the domestic demand of up to 77 million tons, taking into account last year's carry-over stocks of 21 million to 25 million tons.

Last year, Russia harvested a record 97 million tons.

Medvedev said Russia would try to become a leading global exporter of grain once again.

Seeds for next year must be planted by Sept 10 in Russia. The question is will there be rain in the next four days?