AN INVESTIGATION INTO RUSSIA'S CURRENT LEVEL OF SELFSUFFICIENCY IN GRAIN.

The market for grain is vital to the achievement of a nation's food security, promoting development in adjacent sectors of its economy, and driving its economic development in general. This paper attempts to determine the degree to which reductions in grain production in 2018 may affect Russia's self-sufficiency in grain and grain prices. To this end, the authors analyzed the formation and use of grain resources in the Russian Federation, assessed Russia's self-sufficiency in grain, and assessed the correlation between grain production and grain prices in the Russian Federation. The findings indicate that Russia's grain production is currently characterized by positive trends, with boosts posted in grain production, reserves, and exports. With Russia's increasing selfsufficiency in grain, its robust grain production levels are making it possible to fully provide for the nation's internal need for grain, as well as produce enough grain to export. In the authors' view, reductions in grain production in 2018 should not jeopardize Russia's self-sufficiency in grain or cause its shortages. Reduced grain production should not result in a rise in prices for grain and related food products (bread, macaroni, flour, etc.), as Russia's domestic market for grain has no reverse correlation between production and prices. Despite the positive trends, Russia's grain production sector has been faced with a number of issues, like low economic efficiency levels, low productivity levels, and poor grain quality. These issues could be resolved through modernizing the nation's grain production sector, with a focus on directing the Russian economy to an innovation-focused path of development. [ABSTRACT FROM AUTHOR]