17 Nov 2023 18:47

Export duty on Russian wheat to fall 3.3% on Nov 22, barley duty to remain zero - AgMin

MOSCOW. Nov 17 (Interfax) - The export duty on Russian wheat will fall to 4,395.4 rubles per tonne for the week beginning November 22 from 4,544.9 rubles per tonne for the current seven-day period, the Agriculture Ministry said in a statement.

The duty will fall 3.3%. It rose 0.3% on November 15, after falling for four straight weeks.

The duty on barley will be zero for the fifth consecutive week, and the duty on corn will decline to 1,013.1 rubles per tonne from 1,102 rubles per tonne.

The new duties are based on indicative prices of $254.8 per tonne for wheat compared to $253.1 per tonne previously, $165.2 per tonne for barely versus $165.5 per tonne, and $189.6 per tonne for corn against $188 per tonne.

The new duties are valid through November 28.

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.