Experts propose to replace grain damper in the Russian Federation with export quotas and fixed duty

Published 2021년 12월 6일

Tridge summary

Experts at the "Russian agriculture - new frontiers" forum discussed the impact of Russia's grain damper policy, which introduced a floating duty on wheat, corn, and barley exports. The policy, seen as a surprise and negatively affecting market competitiveness, has led to a decrease in Russian wheat purchases and a potential shift in the global wheat export leadership from Russia to the European Union. Despite challenges such as rising costs and price caps, Russia remains a significant player in the global grain market, with a 12% share in the previous season. The policy aims to subsidize agricultural producers but has been seen as a financial burden by manufacturers, with concerns about its impact on long-term investment plans.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Experts during the session "Russian agriculture - new frontiers" of the past VTB Capital forum "Russia is calling!" expressed the opinion that export quotas for grain and fixed duties will be less painful for the grain market of the Russian Federation than a floating duty (the so-called "grain damper"). "During the discussion, issues of increasing production volumes and improving product quality were raised, and it was also noted that export quotas and a fixed level of export duty could become a less painful alternative to the floating rate of export duties as a measure to curb the growth of domestic grain prices," according to a review prepared by analysts at VTB Capital. The session participants noted that the introduction of the duty was a surprise for the industry and led to a decrease in the competitiveness of Russian wheat in the world market. Turkey was cited as an example, which this year for the first time since 2012 began purchasing Argentinean grain. The head of ...

Source: Oilworld