Russia to Cut Wheat Export Duty from 1,146.3 to 725.7 Rubles per Tonne
Russia will reduce its wheat and meslin export duty to 725.7 rubles per tonne from September 23, down from 1,146.3 rubles. Corn duties will fall to 158.4 rubles per tonne, while barley will remain duty-free for a 23rd consecutive week.
Wheat tariff falls by more than a third
Russia will reduce its export duty on wheat and meslin from 1,146.3 to 725.7 rubles per tonne from September 23, according to materials issued by the Ministry of Agriculture. The new rate is about 1.6 times lower than the current tariff and continues the recent decline in charges applied to grain shipments.
The lower duty reduces the direct cost attached to Russian wheat exports and could give exporters more room to adjust offers in international tenders. The practical benefit for farmers will depend on how much of the reduction is reflected in domestic purchasing prices, as well as on export contract prices, logistics expenses and currency movements. The ministry’s indicative price for wheat and meslin will fall from $227.5 to $225.9 per tonne.
Corn duty drops while barley remains exempt
The corn export tariff will decline almost fourfold, from 617.5 to 158.4 rubles per tonne. Its indicative price will fall from $217.3 to $214.8 per tonne. The sharper tariff reduction may improve the competitiveness of Russian corn offers, although the relatively low absolute duty means international prices and transport costs will remain important determinants of trade margins.
Barley will remain subject to a zero export duty for a 23rd consecutive week. Its indicative price is due to rise from $187.1 to $187.6 per tonne, but that increase will not generate a tariff under the announced schedule. The zero rates are currently set to remain in force through September 29.
Possible wider suspension remains pending
Interfax reported that a customs subcommission had approved zero export duties on wheat, rye, corn and feed barley through the end of the current year. However, the required government resolution has not yet been signed, leaving the date of any broader suspension uncertain. The agriculture minister has said the ministry expects the relevant decision in the near future.
Grain producers have repeatedly called for the floating duties to be abolished, arguing that the system has not resolved pressure on farm profitability. The Ministry of Agriculture has continued to describe the mechanism as broadly effective. Revenue collected through the duties is returned to Russian regions as subsidies for producers of wheat, rye, corn and feed barley.
Floating mechanism links duties to export prices
Russia has applied export duties to grain since June 2021. The tariff is calculated as 70% of the difference between a crop’s base price and its indicative price. Base prices are intended to reflect factors including planting costs, expected harvest volumes, global crop prices and exchange rates, while indicative prices are calculated from the weekly average value of export contracts.
The base price for wheat and meslin is 18,000 rubles per tonne. For corn and barley, it will rise from 16,875 to 17,875 rubles. Since July 6, 2022, the duties themselves have been calculated in rubles, although indicative prices continue to be quoted in US dollars because the underlying export contracts are priced in that currency. For exporters and growers, the September 23 reduction offers immediate relief, but the unresolved proposal for zero duties through year-end remains the more consequential policy question.
