1 Nov 2023 11:49

Export duty on Russian wheat drops 14.1% to 4,923.4 rubles/tonne as of Nov 1 - Agriculture Ministry

MOSCOW. Nov 1 (Interfax) - The export duty on Russian wheat has dropped 14.1% to 4,923.4 rubles per tonne as of November 1 from 5,297.7 rubles per tonne the previous seven-day period, the Agriculture Ministry said in a statement.

The duty on barley is zero for the second consecutive week, and the duty on corn has declined to 1,618 rubles per tonne from 2,218.1 rubles per tonne.

The duties are based on indicative prices of $253.20 per tonne for wheat compared to $252.60 per tonne the previous seven-day period, $164.70 per tonne for barely versus $162.10 per tonne, and $191.60 per tonne for corn against $195.80 per tonne.

Owing to the long weekend at the beginning of November, the new rates will be valid through November 8, Wednesday. The rates published on November 3 will be valid November 9-14, through Tuesday, the Agriculture Ministry told Interfax.

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 duty totals 70% of the difference between the baseline price and the indicative price.