The Ministry of Agriculture of Russia intends to raise the base price of wheat for export duty

Published May 26, 2024

Tridge summary

The Russian Ministry of Agriculture is planning to increase the base price for wheat, which is used to calculate export duties, from 15,000 rubles to 18,000 rubles per tonne. This decision is due to the country's decreasing grain reserves and a change in the mechanism for calculating tariff rates for grain. The base price for other grains like corn and barley may also increase. Export duties on Russian grains have been in effect since June 2, 2021, and vary depending on the base and indicative prices. The duties were intended to maintain the profitability of agricultural producers and provide support, but farmers are asking for them to be cancelled.
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Original content

The Russian Ministry of Agriculture plans to increase the base price (the so-called “cut-off price”) for wheat, according to which the export duty for this crop is calculated, to 18 thousand rubles. As the Telergam channel reported to the Union of Grain Exporters, Alexander Malov, director of the ministry’s department for regulation of the agricultural market, spoke about this decision at a meeting with representatives of the People’s Farmer association. A representative of the department named two prerequisites for the rise in price of wheat on the domestic market. The first is that today the country no longer has such grain reserves that will put pressure on prices. The second is due to the fact that the ministry plans to change the mechanism for calculating tariff rates for grain. At the same time, Malov added that he would not predict exactly how much the base price would increase. We also recall that earlier the former Minister of Agriculture, and today the Deputy Prime ...
Source: Rosng
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