Export duty on Russian wheat set to rise by 12

1. Export duty on Russian wheat set to rise by 12.1%: Agriculture Ministry The Agriculture Ministry of Russia stated that the export duty on wheat by Russia would be increased by 12.1% to 4,493.7 rubles per tonne on September 13 - 19, 2023 from the previous week’s 4007.6 rubles per tonne, reported by Interfax, a Russian news agency. This export duty increased by 7.5% in a week previously. Additionally, the export duty on barely will significantly increase by 1.6 fold, surging to 931.7 rubles per tonne from the previous rate of 574.8 rubles per tonne. The duty on corn will also experience a surge from 1954.9 rubles per tonne to 2465.2 rubles per tonne. These export duties are based on the indicative prices. Wheat is assessed at $241.60 per tonne compared to the previous week’s rate of $238.60 per tonne. Similarly, the barley is priced at $177.50 per tonne compared to the last week at $175.30 per tonne and the corn is priced at $200.10 per tonne, an increase from the previous week’s $196 per tonne. All these duties will be valid through September 19, 2023. It’s interesting to note that on June 1, 2023, the Agriculture Ministry raised its baseline price for calculating the export duties. This adjustment saw an increase in the baseline price of wheat from 15,000 rubles per tonne to 17,000 rubles per tonne. While corn and barley saw a surge in baseline prices from 13,875 rubles per tonne to 15,875 rubles per tonne.

2. Previous Decisions on Export Duties On June 2, 2021, The Russian government introduced a grain damper mechanism. This mechanism dictates the fluctuating export duties of wheat, corn and barley, with the funds collected by these duties will be channelled back to support agricultural producers. These duty rates are recalculated on a weekly basis based on the price indicators derived from the export contracts listed on the Moscow Exchange. The Russian government took the decision on June 30, 2022, to convert these duties into rubles, starting from July 2022. Currently, the baseline price for calculating the export duty is hovering around 17,000 rubles per tonne for wheat and 15,874 rubles per tonne for barley and corn. The duty is calculated at 70% of the difference between the baseline price and the indicative price. Final thoughts In conclusion, the Russian government has changed the export duties of wheat, barley, and corn, with a significant increase in response to the changing price indicators. These measures are a part of the Russian strategy to empower their agricultural producers and regulate grain exports. If you want to buy wheat in bulk as a wheat importer, or if you are a wheat exporter looking to bulk wheat export then Tradologie offers the perfect platform for your needs.Tradologie facilities bulk agro-commodities trade across the globe including all kinds of wheat in bulk. Utilizing the Tradologie platform, purchasers have the opportunity to access premium agro- products like rice, wheat, and spices, among other commodities all at flexible prices. If you want to register as a buyer, click here. If you want to register as a seller, click here. To stay updated about the latest developments in the agro-trading sector, follow Tradologie on all social media platforms.