MOSCOW, January 26. /TASS/. Russia’s government has approved an increase in the wheat export duty from 25 to 50 euro per tonne within the quota starting March 1, as well as introduction of duties on other types of grain starting March 15. A respective decree has been signed by Prime Minister Mikhail Mishustin, the government’s press service reported on Tuesday.
"From February 15 to February 28 the duty on wheat (1,000 kg) will equal 25 euro, duties on barley and corn (1000 kg) will be zero from February 15 to March 14. From March 1 to June 30 increased duties on wheat will be introduced in the amount of 50 euro, while from March 15 to June 30 - on barley and corn (10 and 25 euro, respectively)," the report said.
Meanwhile the issue is about supplies within the tariff quota equaling 17.5 mln tonnes. The duty on export of grain in volumes exceeding it will be 50% of the customs cost of products, but not less than 100 euro per 1,000 kg.
The decision covers products delivered from Russia outside the Customs Union. It is expected to contribute to a decline in export volumes, as well as allow refocusing market participants from sale of agricultural raw materials to other countries to export of high value-added agriculture goods.
The decree is part of a package of policies on reducing food prices drafted by the government at the instruction of Russian President Vladimir Putin, the cabinet explained. President said earlier that it is necessary to swiftly respond to rising prices of basic products.
A subcommittee on customs tariff and non-tariff regulation welcomed an increase in the wheat export duty, as well as introduction of corn and barley duties, on January 15.
Russian Economic Development Minister Maksim Reshetnikov said at the meeting that the ministry was worried about growth of export contracted prices for grain, particularly for wheat. Downgrades of projections on reserves and harvest globally on a number of large producing countries, as well as persisting excessive demand, excessive volume of forward purchases on key partnering countries, are also the key factors driving prices up, he said. All that is putting pressure on global prices that will persist in first months of 2021 as well, the minister added.
Moreover, it was reported that the Russian Economic Development Ministry and Agriculture Ministry are agreeing a floating mechanism of the export duty setting that will come into force for the grain market starting July 1, 2021.