Russia to hike grain export duty to support domestic producers
byAdam Noh•
0
Russia to hike grain export duty to support domestic producers
The export duty on Russian wheat will be increased from $57.80 to $58.70 per ton on October 13, the Ministry of Agriculture said. Duties on barley and corn will be also hiked to $49.40 and $47.20 per ton, respectively.
The export duty rate is calculated at an indicative price of $283.90 per ton for wheat, $255.60 for barley, and $252.50 for corn. The new duty rates will be in effect until October 19.
This summer, Russia introduced a grain damper mechanism, which provides for floating duties on the export of wheat, corn and barley. The duty is 70% of the difference between the indicative price and the base price. The base price for wheat is $200 per ton; for corn and barley, $185 per ton.
The funds received from the duties will be distributed as subsidies for Russian producers, depending on volume generated.
