The Ministry of Agriculture is preparing to raise the export duty on grain; how will this affect the domestic market and wheat prices in Russia

The Ministry of Agriculture is considering the possibility of increasing the export duty on wheat by 10%, Izvestia was told in the department. The measure will help stabilize the cost of the product in the domestic market. The high demand for grain in the world is pushing the cost of production up, the ministry said in a letter to the Cabinet dated May 26 (Izvestia has it). The average world price for wheat as of May 27 was $373 per ton. As soon as it overcomes the mark of $375, the tax on exporters will be increased to 80%, the ministry said. The trend for a sharp rise in grain prices will change in the next agricultural year, according to the Russian Grain Union. This season, the Ministry of Agriculture expects a high grain harvest - about 128 million tons, which will almost double exports, and an increase in supply on the world market may reduce prices. The Ministry of Agriculture sent a report to the government on the rise in prices for agricultural products last month. ...