Export duty on Russian wheat to decline 8% to 2,629 rubles/tonne as of June 15 - Agriculture Ministry

MOSCOW. June 9 (Interfax) - The export duty on Russian wheat will decline nearly 8% to 2,629 rubles per tonne as of June 15 from 2,856.3 rubles per tonne the previous seven-day period, the Agriculture Ministry said in a statement.

The duty on barley will remain zeroed out, and the duty on corn will decline to 1,189.9 rubles per tonne from 1,214.4 rubles per tonne.

The duties are based on indicative prices of $255.70 per tonne for wheat compared to $262.40 per tonne the previous seven-day period, $187.20 per tonne for barely versus $190.10 per tonne, and $216.50 per tonne for corn against $219.20 per tonne.

The latest duties will be valid through June 20.

The rates in effect since June 7 are valid until June 14, inclusive, because of the national holiday on Monday, June 12.

As reported, the Agriculture Ministry on June 1, 2023, hiked the baseline price for calculating the export duty on wheat, the so-called cut-off price, to 17,000 rubles per tonne from 15,000 rubles per tonne, and raised the baseline price on barley and corn to 15,875 rubles per tonne from 13,875 rubles per tonne.

The 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 Russian 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 currently 17,000 rubles per tonne for wheat and 15,875 rubles per tonne for barley and corn, respectively. The duty totals 70% of the difference between the baseline price and the indicative price.