Export duty on Russian wheat to rise 7.2% from Oct 30, increase two-fold on barley

MOSCOW. Oct 25 (Interfax) - The export duty on Russian wheat will rise 7.2% to 227.9 rubles per tonne from October 30.

It stood at 2,121.2 rubles per tonne the previous week.

The duty on barley will rise from 389.7 rubles per tonne to 802 rubles per tonne and on corn from 2,671.7 rubles per tonne to 2,702.1 rubles per tonne.

Duty rates are based on indicative prices of $220 per tonne for wheat against $217.4 per tonne in the previous period, $186.6 per tonne for barley versus $180.2 per tonne, and $214.7 per tonne for corn against $213.9 per tonne.

Russia introduced a grain damper mechanism on June 2, 2021, which stipulates floating duties on the export of wheat, corn and barley and the return of funds received from them to subsidize agricultural producers. The duties are calculated weekly from indicators based on the prices of export contracts registered on the Moscow Exchange . Duty rates were calculated in dollars initially and in rubles since July 2022. The duty is 70% of the difference between reference and indicative prices.

The reference price for calculating the export duty on wheat was initially 15,000 rubles per tonne and the reference price on barley and corn was 13,875 rubles per tonne. These were raised in July 2023 to 17,000 rubles per tonne and 15,875 rubles per tonne, respectively. The prices were raised again on June 28, 2024 to 18,000 rubles per tonne for wheat and 16,875 rubles per tonne for barley and corn.