Export duty on Russian wheat declines 0.4% as of Dec 20, barley remains zero - Agriculture Ministry

MOSCOW. Dec 20 (Interfax) - The export duty on Russian wheat has declined 0.4% to 4,048.1 rubles per tonne as of December 20 from 4,063.5 rubles per tonne the previous seven-day period, the Agriculture Ministry said in a statement.

The duty on barley remains at zero for the ninth consecutive week, and the duty on corn has declined to 794.4 rubles per tonne from 839.5 rubles per tonne.

The duties are based on indicative prices of $250.20 per tonne for wheat compared to $251.50 per tonne the previous seven-day period, $172.20 per tonne for barley versus $173.40 per tonne, and $186.80 per tonne for corn against $188.30 per tonne.

The latest duties are valid to December 26, inclusive.

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