Russia raises export duty on wheat by 24.8%

YEREVAN, December 28, /ARKA/. - The export duty on Russian wheat has been raised by 24.8% to 4,160.9 rubles per ton on December 28 from 3,333.8 rubles per ton the previous week, Interfax reported citing the Agriculture Ministry.

The duty on barley has risen to 3,420.4 rubles per ton from 2,686.9 rubles per ton, and the duty on corn has increased from zero to 692.6 rubles per ton.

The Agriculture Ministry's press service told Interfax that the latest duties would be valid through January 10, 2023, because of the long New Year holidays. The duties announced on December 30, 2022, will be valid from January 11 to January 17, 2023.

The duties are based on indicative prices of $312.8 per ton for wheat compared to $314.40 per ton the previous week, $280.20 per ton for barely versus $281.80 per ton, and $222 per ton for corn against $218.50 per ton.

The Russian government on June 30, 2022, adopted a resolution to convert the duties into rubles. The baseline price for calculating the export duty is 15,000 rubles per ton for wheat and 13,875 rubles per ton for barley and corn, respectively. The duty totals 70% of the difference between the baseline price and the indicative price.

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 based on price indicators based on the value of export contracts registered on the Moscow Exchange . -0-