Russia keeps wheat, barley and corn export duties at zero from July 22
Russia will maintain zero export duties on wheat, barley and corn from July 22, according to the Agriculture Ministry. The decision preserves the previous week’s rates and supports the competitiveness of Russian grain in international markets.
Zero rates extended for another week
Russia will keep export duties on wheat, barley and corn at zero from July 22, maintaining the rates applied during the previous week, Interfax reported, citing the Agriculture Ministry. The weekly decision leaves exporters of the country’s three principal traded grains without an additional duty charge for the new calculation period.
The duties were calculated using indicative prices of $229.1 per tonne for wheat, $186 per tonne for barley and $231.3 per tonne for corn. In the preceding period, the corresponding benchmarks were $232.3, $213.6 and $230.5 per tonne. Wheat and barley indicative prices therefore declined, while the corn benchmark increased slightly.
The largest weekly movement was recorded for barley, whose indicative price fell from $213.6 to $186 per tonne. Wheat declined by $3.2 per tonne, while corn rose by $0.8 per tonne. Despite these differences, none of the three calculated benchmarks produced a positive duty for the period beginning July 22.
Wheat duty has been mostly absent since April
The wheat export duty has remained at zero since April 22, apart from one week between July 3 and July 10, when it was set at 370.1 rubles per tonne. Duties on barley and corn have been zero since April 15, according to Interfax.
For grain exporters and international buyers, the continuation of zero rates removes a variable cost that can affect offer prices and trading margins. The immediate effect is most relevant for contracts priced close to competing origins, where even a relatively small duty can influence the attractiveness of Russian supply. Producers also retain more exposure to the market price, although domestic logistics, financing and the ruble exchange rate remain separate components of export economics.
The result does not suspend Russia’s export-duty system. Rates are recalculated every week and can rise again if the relationship between indicative and base prices changes. The brief return of the wheat duty in early July demonstrates that a zero rate in one calculation period does not guarantee the same outcome in subsequent weeks.
Floating-duty mechanism remains in force
Russia introduced its grain damper mechanism on June 2, 2021. It applies floating export duties to wheat, corn and barley, with the revenue intended to return to the agricultural sector through subsidies for producers. The rates are calculated weekly using indicators based on export contract prices registered on the Moscow Exchange.
Under the mechanism, the duty equals 70% of the difference between the base price and the indicative price. The current base price is 18,000 rubles per tonne for wheat and 17,875 rubles per tonne for both barley and corn. The zero readings from July 22 mean exporters receive another duty-free week, but traders will continue to monitor contract-price indicators because changes in those benchmarks can quickly alter the payable rate and the competitiveness of Russian grain offers.
