BRICS leaders set to discuss grain exchange initiative at Dubai forum

The creation of a BRICS Grain Exchange will be a key topic at the Global Grain and Pulses Forum in Dubai, with discussions on its potential taking place alongside other important global grain market issues.

Eduard Zernin, Chairman of the Board of the Union of Grain Exporters and Producers, highlighted that this year's forum has attracted over 1,100 delegates from 53 countries, Caliber.Az reports, citing Russian media.

"Common sense is returning to the markets. Yesterday, they wanted to cancel us, and today our forum draws more attendees than any event of those who sought to cancel us. This season, we’ve returned to countries that suffered the most due to political barriers. Our stance remains unchanged — grain should not be politicized," he said.

The forum will explore new opportunities and future forecasts for global grain and grain legume markets. A key focus will be the initiative for establishing a BRICS Grain Exchange, a proposal strongly supported by the leaders of the BRICS nations.

The Russian Federation introduced the idea for the exchange, and the Kazan Declaration adopted at the October 2024 BRICS summit welcomed it. The initiative calls for the creation of a commodity trading platform — the BRICS Grain Exchange — within the BRICS framework, with plans to expand it to include other agricultural sectors.

According to the Union of Grain Exporters and Producers, the exchange could eventually trade agricultural products worth more than $1 trillion. The group’s estimates reveal that BRICS nations, including recent additions, produce 1.24 billion tons of grain annually, making up 44% of global production. Consumption nearly matches production at 1.23 billion tons, also 44% of the global total. For wheat, production is projected at 377 million tons (48% of the global share), with consumption reaching 374 million tons (47%). In corn, production is 501 million tons, and consumption is 484 million tons—both representing 40% of global values.

Initially formed in 2006 by Brazil, Russia, India, and China, BRICS expanded to include South Africa in 2010 as a counterbalance to the G7. In 2024, BRICS further expanded by admitting Iran, Egypt, Ethiopia, and the UAE. Saudi Arabia has also been invited, and Türkiye, Azerbaijan, and Malaysia have applied for membership, with other countries expressing interest.

By Tamilla Hasanova