Wheat export duty doubled in Russia

MOSCOW, March 1 – RIA Novosti. Since March 1, Russia will double the export duty on wheat within the framework of the quota for exporting grain abroad – to 50 euros per ton from 25 euros, the corresponding decree of the Russian government was signed at the end of January.

The Russian government at the end of December announced a set of measures in connection with the rise in food prices in Russia. In particular, for the period from February 15 to June 30, 2021, a quota for the export of wheat, rye, barley and corn was set in the amount of 17.5 million tons. Simultaneously, on February 15, a duty was introduced on the export of grain crops.

Within the quota, the duty for wheat from February 15 is 25 euros per ton, and from March 1 – 50 euros per ton. The duties on the export of corn and barley will be zero until March 15, and after that date they will amount to 25 euros and 10 euros per ton, respectively. The rate for rye within the quota is zero. After sampling the quota, the duty for all crops will be 50% of the customs value, but not less than 100 euros per ton.

The rates will be in effect until June 1, and on June 2, a flexible export duty on wheat, corn and barley will be applied – it will operate within the framework of the “grain damper” mechanism. The duty will be 70% of the difference between the indicative price (arithmetic average of daily price indicators) and the base price. The base price for wheat will be $ 200 per tonne, for corn and barley – $ 185.

To calculate the flexible duty on wheat, barley and corn, data on the price of export contracts listed on the exchange will be used. The funds received from the duties will be returned to the Russian regions in the form of subsidies to producers of wheat, rye, maize and feed barley. Subsidies to regions will be distributed depending on the volume of products produced.

Author: wedocount

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