Russian Grain Export Duty Now in Effect

In order to make Russian grain sales to foreign markets less attractive and stabilize domestic flour and bread prices, Russian grain export duty took effect on February 1st. The grain export duty will be a minimum rate of 35 euros or (approximately $43) per ton. Field reporter Greg Martin has more
Martin: “Despite having a near record wheat harvest last year, prices on the Russian market have been increasing as growers have chosen to export their wheat where prices linked to foreign currencies have been considerably higher. The Russian government declared this duty in December 2014 to make Russian grain sales to foreign markets less attractive and to stabilize flour and bread domestic prices. The duty began Feb. 1st and will be enforced until June 30th. A Russian wheat growers association said that the duty is preferred to an out export ban, but any measure that will reduce farmers’ income will have an impact on the next harvest.”
It was reported by market participants in the last several months that the Russian government had taken other measures to slow exports ahead of the duty as it became difficult to obtain food safety export certificates as well as booking rail transportation throughout late 2014.
Before this duty took effect, grain exporters have raised Russian grain export by 30% up to 495 thousand tonnes in first two weeks of 2015 as compared with the same period in 2014.