Russia to Raise Wheat Export Duty to 1,012.1 Rubles per Tonne on August 26
Russia will raise its wheat and meslin export duty by 291 rubles to 1,012.1 rubles per tonne from August 26. The higher charge will increase exporters’ costs and could affect Russian offer prices, while the corn duty will more than double and barley will remain duty-free.
Wheat duty rises by 291 rubles
Russia will increase its export duty on wheat by 291 rubles per tonne from August 26, according to materials published by the Ministry of Agriculture. The rate will rise from 721.1 rubles to 1,012.1 rubles per tonne. The same duty will apply to meslin, a mixture of wheat and rye, because the two products are revised simultaneously and carry identical rates.
The increase adds a direct cost for companies shipping Russian wheat abroad. Exporters must either absorb the additional 291 rubles per tonne in their margins, seek a lower purchase price from domestic suppliers or reflect part of the change in export offers. The practical effect will depend on contract terms, the ruble and competition in destination markets.
The new rate remains part of a volatile pattern. The wheat and meslin duty was last suspended on July 15. It had also been set at zero on April 22 and was inactive at the beginning of the year. The charge was restored on March 18 at 140.9 rubles per tonne, after which rates moved higher several times before temporary declines.
Corn charge more than doubles
The export duty on corn will rise from 285 rubles to 607.3 rubles per tonne, more than doubling. The corn rate has alternated between increases, reductions and zero levels. It was most recently restored on July 29 at 232.6 rubles per tonne. An earlier return in the first week of April set the charge at 85.6 rubles per tonne, but that rate was removed one week later.
Barley will remain exempt for an eighteenth consecutive week. Its zero rate is scheduled to stay in effect through September 1. The different treatment gives barley exporters a cost advantage over wheat, meslin and corn suppliers, although commercial competitiveness also depends on crop quality, freight costs and demand for each grain.
Formula links duties to contract prices
Russia’s floating grain duties have operated since June 2021. ROSNG reports that the charge equals 70% of the difference between a product’s base price and its indicative price. Base prices represent thresholds for imposing a duty and take account of factors including planting costs, the expected harvest, global crop prices and exchange rates. The Ministry of Agriculture sets these levels.
The base price for wheat and meslin is 18,000 rubles. For corn and barley, it will rise from 16,875 rubles to 17,875 rubles. Indicative prices are calculated as the weekly arithmetic average of export contract values. The Moscow Exchange compiles the figures and passes them to market participants, which submit the data to the ministry.
From August 26, the indicative price for wheat and meslin will fall from $193.5 to $191. The source also reports the same decline for barley, while corn’s indicative price will edge up from $222.1 to $222.2. Indicative prices remain denominated in US dollars because export contracts are priced in that currency, although duty rates have been calculated in rubles since July 6, 2022.
Grain producers have repeatedly called for the floating duties to be abolished, arguing that the mechanism does not resolve profitability pressures. The Ministry of Agriculture has retained the system, which it considers broadly effective. Revenue collected through the duties is distributed to Russian regions as subsidies for producers of wheat, rye, corn and feed barley.
