Base price for calculating wheat export duty in Russia will remain unchanged, barley, corn to increase by 1,000 rubles - source

MOSCOW. June 24 (Interfax) - The base price for calculating wheat export duties in Russia will remain unchanged in the new season (starting July 1, 2025), while the base prices for barley and corn may increase by 1,000 rubles.

This proposal was supported at a recent meeting of the customs subcommittee, a grain market source familiar with the discussion told Interfax.

The signing of the corresponding government resolution should not be expected before the second half of July, another source said.

The Agriculture Ministry did not immediately respond to Interfax's request for comment.

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

The base price for calculating export duties on barley and corn may thus rise to 17,875 rubles per tonne.

According to the Agriculture Ministry's forecast, grain exports in the current agricultural year (July 2024 - June 2025) will reach 53 million tonnes, including around 44.5 million tonnes of wheat. Last year, exports stood at 72.2 million tonnes and 54.1 million tonnes, respectively.

For the new season, the Agriculture Ministry estimates grain exports at 53-55 million tonnes, including approximately 45 million tonnes of wheat.