Export duty on Russian wheat rises 5.5% to 2,609.6 rubles/tonne as of July 5 - Agriculture Ministry

MOSCOW. July 5 (Interfax) - The export duty on Russian wheat has risen 5.5% to 2,609.6 rubles per tonne as of July 5 from 2,473.3 rubles per tonne the previous seven-day period, the Agriculture Ministry said in a statement.

The duty has increased for the first time since the new baseline price for calculation was implemented as of June 7 this year.

The duty on barley remains zero for the fifth consecutive week, and the duty on corn has declined to 932.7 rubles per tonne from 937.8 rubles per tonne.

The duties are based on indicative prices of $245 per tonne for wheat compared to $244.40 per tonne the previous seven-day period, $178.10 per tonne for barely versus $177.90 per tonne, and $201.70 per tonne for corn against $204 per tonne.

The latest duties are valid through July 11.

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.