Export duty on Russian wheat rises 10.8% to 2,517 rubles per tonne on Nov 7

MOSCOW. Nov 7 (Interfax) - The export duty on Russian wheat rises 10.8% to 2,517 rubles per tonne on November 7 from 2,227.9 rubles per tonne the previous week, the Russian Agriculture Ministry said.

The wheat duty grew 7.2% the previous week.

The duty on barley rises from 802 rubles per tonne and 389.7 rubles per tonne in the previous two weeks to as much as 1,266.2 rubles per tonne on November 7 and that on corn from 2,702.1 rubles per tonne and 2,671.7 rubles per tonne respectively to 3,059.9 tonnes per tonne.

Duty rates are based on indicative prices of $222.5 per tonne for wheat against $220 per tonne in the previous week, $192.5 per tonne for barley versus $186.6 per tonne and $218.9 per tonne for corn against $214.7 per tonne.

The new duties will be valid until November 12 inclusive.

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.