Export duty on Russian wheat declines 3.9% as of Feb 28, barley to rise 3-fold - Agriculture Ministry

MOSCOW. Feb 28 (Interfax) - The export duty on Russian wheat has declined 3.9% to 3,800.5 rubles per tonne as of February 28 from 3,952.9 rubles per tonne during the previous duty period, the Agriculture Ministry said.

The duty on barley has surged three-fold to 571 rubles per tonne from 190 rubles per tonne, while the duty on corn has declined to 828.9 rubles per tonne from 1,083.5 rubles per tonne.

The duties are based on indicative prices of $243.50 per tonne for wheat against $248.40 per tonne the previous period, $181.20 per tonne for barley versus $177.10 per tonne, and $185.20 per tonne for corn against $191.10 per tonne.

The latest duties are valid until March 5, inclusive.

The Russian government on June 2, 2021, implemented 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.

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.