The world's largest wheat exporter, Russia, could change its formula for calculating its grain export taxes in the event of a sharp rise in world prices, said Minister of Agriculture Dmitry Patrushev at a government meeting today.
Russia, which mainly supplies wheat to the Middle East and Africa, introduced a formula-based tariff on grain exports as part of the measures from June. The government hopes that this will help stabilize inflation. Inflation is at a five-year high.
The Department of Agriculture sets the duty rate on a weekly basis based on a formula that sees the tax at 70% of the difference between the price indicators reported by traders per tonne of wheat and $ 200. The tax is $ 69.9 per tonne of wheat from November 10-16.
"In the event of a significant increase in global prices ... say up to $ 400 per tonne or more, the formula for calculating the variable export duty will be revised upwards," said Patrushev.
Russian wheat with 12.5% protein from Black Sea ports for delivery in the second half of November cost $ 326 per tonne of fob late last week.
Russia also plans to set a grain export quota, including wheat, for the first half of 2022 to help secure domestic supplies, Patrushev said.
The level of the quota will be set by the end of December based on the Russian harvest in 2021 and the export pace since June, the start of the current 2021/22 marketing year, he added.
However, Eduard Zernin, chairman of the Russian Association of Grain Exporters, told Reuters that he expects Russia to set the quota by February 15 and it will last until June 30.
To boost domestic meat supplies, Russia will also set tax-free quotas for frozen beef and pork imports, the minister said.
The quota for beef is 200,000 tons for 2022 and 100,000 tons for pork for the first six months of 2022, the Ministry of Economic Affairs said in a separate statement.
Source
Hansa Terminhandel GmbH