From August 7, Russia will reduce the export duty on wheat to a record level

Published Aug 5, 2024

Tridge summary

The Russian Ministry of Agriculture has slashed the export duty on wheat from 906.4 to 444.4 rubles per ton effective August 7, marking the largest reduction in recent history. This move is attributed to the ruble's strengthening and stable global prices. Meanwhile, the export duties for corn and barley remain zero. Since June 2, 2021, Russia has implemented export duties on grains, which are calculated based on the cost of planting, expected harvest, world price, and exchange rates. These duties, which range from 20% to 70% of the difference between the base and indicative prices, are designed to maintain the profitability of agricultural producers. However, farmers have expressed that these duties fail to solve the profitability issue in the grain market and have called for their abolition.

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Original content

The export duty on Russian wheat will immediately decrease by 462 rubles from August 7 – from the current 906.4 to 444.4 rubles, the Ministry of Agriculture reported. This was the largest decline over the past few weeks, and the value itself was a historical anti-record. The bet on meslin (a mixture of wheat and rye) will be the same. Let us remind you that the values for it and wheat always coincide. For corn and barley, rates will remain zero for the 16th and 15th week in a row. Director General of the Institute for Agricultural Market Studies (IKAR) Dmitry Rylko told pole.rf that the reduction in the export duty on wheat is due to two negative factors - the strengthening of the ruble and the lack of growth in world prices. Also, according to him, the duty was no longer regulated, “and it is where it should be within the framework of relatively free pricing.” Grain producers have repeatedly advocated the abolition of duties on grain and the mechanism itself. Initially, ...

Source: Rosng