Russia Raises Its Wheat Export Duty to $91 Per Ton

Russia Raises Its Wheat Export Duty to $91 Per Ton
The previous export duty was $84.9 per ton.

The export duty on wheat from Russia will rise to $91 per ton from December 15, the Moscow-based Interfax News Agency reported on Friday with reference to the country's Ministry of Agriculture. The previous duty was $84.9 per ton.

The duty on barley will rise from $75.1 per ton to $78.7, while the export duty on corn will increase to $54.4 per ton.

The new duty rates will remain in effect until December 21.

They are calculated based on indicative prices for wheat at $330.1 ($321,3 for the previous duty rate), for barley at $ 297,5 (292,3), for corn at $ 262,8 ($262,7) per ton.

Since June 2, Russia has introduced a grain damper mechanism, which provides for floating duties on the export of wheat, corn and barley. The government uses the funds received from the duties to subsidize agricultural producers. The duty rates are calculated weekly based on price indicators calculated using export contract prices that are listed on the Moscow Exchange.

According to the forecast of the Ministry of Agriculture, grain exports in current agricultural season (July 2021 - June 2022) will amount to 45-48 million tons. During the previous agricultural season, which ended on June 30, Russia exported 49 million tons of grain, including 38.4 million tons of wheat.