Export duty on Russian wheat do drop 27% as of July 3, barley and corn to remain zero - Agriculture Ministry

MOSCOW. July 1 (Interfax) - The export duty on Russian wheat will drop 27% to 1,818.2 rubles per tonne as of July 3 from 2,492.8 rubles per tonne during the previous duty period, the Agriculture Ministry said.

The respective duties on barley and corn will remain zero.

Duty rates are based on indicative prices of $236.30 per tonne for wheat against $235.80 per tonne the previous duty period, $173.70 per tonne for barley versus $165 per tonne, and $180.60 per tonne for corn against $177.80 per tonne.

The duties are valid until July 9, inclusive.

As reported, the government on Friday adopted a resolution according to which the baseline export prices for calculating duties on wheat and meslin have increased from 17,000 rubles per tonne to 18,000 rubles per tonne, and on barley and corn from 15,875 rubles per tonne to 16,875 rubles per tonne.

The Russian government on June 2, 2021, implemented a grain damper mechanism that stipulates floating duties on exports of wheat, corn, and barley, as well as returning the funds received from the duties in order to subsidize agricultural producers. The duties are calculated weekly on the basis of price indicators based on the value of export contracts registered on the Moscow Exchange .

The government on June 30, 2022, adopted a resolution to convert the duties from dollars into rubles as of July 2022. The duty totals 70% of the difference between the baseline price and the indicative price.