Export duty on Russian wheat rises 22.4% to 3,696.3 rubles per tonne on Dec 4 - Agriculture Ministry

MOSCOW. Dec 4 (Interfax) - The export duty on Russian wheat has risen 22.4% to 3,696.3 rubles per tonne in the week starting December 4 from 3,020.3 rubles per tonne during the previous duty period, the Agriculture Ministry said.

The rate of growth in duties has accelerated sharply from 12.3% the previous week.

The duty on barley has risen to 1,767.7 rubles per tonne from 1,166 rubles per tonne the previous week, and the duty on corn has increased to 4,127 rubles per tonne from 3,584.1 rubles per tonne.

Duty rates are based on indicative prices of $223.80 per tonne for wheat against $223.50 per tonne in the previous period, $186.50 per tonne for barley versus $185.70 per tonne, and $218.90 per tonne against $220.30 per tonne

The duties are valid until December 10, 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 Agriculture Ministry on June 1, 2023, hiked the reference price for calculating the export duty on wheat to 17,000 rubles per tonne from 15,000 rubles per tonne, and the reference price on barley and corn to 15,875 rubles per tonne from 13,875 rubles per tonne. These rose to 18,000 rubles for wheat and 16,875 rubles for barley and corn on June 28, 2024.