MOSCOW, October 9 (RIA Novosti) - The Russian government will take all necessary measures to limit growth in food prices, Agriculture Minister Alexei Gordeyev said on Tuesday.
The minister said government measures would relate primarily to customs regulations and incentives to increase output.
Gordeyev said Prime Minister Viktor Zubkov had given the heads of relevant ministries and departments instructions at a conference on Monday on protecting the Russian food market amid rising agricultural prices on world markets.
The agriculture minister said it would be necessary to "increase domestic output to lessen dependence on imports," adding that Russia imported 40% of its meat and 25% of its milk. The official also urged action to ease customs and tariff restrictions.
However, Arkady Dvorkovich, a senior presidential economic adviser, warned that artificially limiting grain and food prices could be dangerous for Russia.
"It will not be effective to control the prices artificially, since a potential shortfall of products could cause queues and a further price hike," the adviser told the press, saying however that he was not against customs and tariff regulations.
Kommersant, a leading Russian business daily, quoted economics minister Elvira Nabiullina as saying at a meeting with President Vladimir Putin on Monday that rising food prices would push national inflation above the target level.
"Unfortunately, we will have inflation at 8% this year," she said. Among other reasons, the minister cited the price rise on world agricultural markets caused by reduced or abolished agricultural subsidies in several European Union countries.
Nabiullina said that a draft resolution on increasing duties on wheat and barley had already been submitted to the government, and that "duties on milk and dairy products are being considered."
The economics minister also said the government planned to introduce new trade regulations, and to prevent local monopolies from dominating regional markets.
