Export duty on Russian wheat to fall 1.8% from May 24 - AgMin

MOSCOW. May 19 (Interfax) - The export duty on Russian wheat will fall to 4,644.4 rubles from 4,727.6 rubles per tonne in the week May 24-31, the Agriculture Ministry said in a statement.

The duty has fallen for seven straight weeks, this time by just 1.8% compared with a previous drop of 10.4%.

The duty on barley will decrease to 1,559.1 rubles from 2,117.8 rubles per tonne, but that on corn will increase to 2.565.8 rubles from 2,364.3 rubles per tonne.

The duties are based on indicative prices of $275.3 per tonne for wheat compared to $277.90 per tonne the previous seven-day period, $204.9 per tonne for barely versus $215.90 per tonne, and $223.2 per tonne for corn against $220.40 per tonne.

The Russian government on June 2, 2021, introduced 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 into rubles as of July 2022. The baseline price for calculating the export duty is 15,000 rubles per tonne for wheat and 13,875 rubles per tonne for barley and corn, respectively. The duty totals 70% of the difference between the baseline price and the indicative price.