Russia must may reconsider its tariff policy for wheat exports and the harvest year 2016/17 reduce its prices for wheat intervention. That is the opinion of the agricultural SovEcon consultancy.
Russia, one of the leading wheat exporters in the world, finished just a households on June 30 and will drive an even greater harvest in the following season. Therefore, exports must not be obstructed.
In the season by 2015/16, Russia exported 34.4 million tons of grain to countries such as Armenia, Belarus, Kazakhstan and Kyrgyzstan. If you still add the flour exports, there were even 35 million tons, of which 25 million tons of wheat.
In the coming season, the exportable surplus is estimated at 37 million tons. The Russian grain harvest is appreciated by SovEcon to 109 million tonnes, of which 66 million tons of wheat. Order not to hinder the exports, the company advises the Government to cancel the export tariffs for wheat and to lower the intervention price. The exporters have long demanded the abolition of customs duties. Currently, the minimum rate of 10 rubles comes to fruition, although only 0.16 USD/tonne, but drops the price of the ruble if the world market price increases, also the duty rate will rise.
In the Ministry of agriculture to prepare a corresponding proposal for the Government this week. Exporters need rules, which make possible to calculate prices. The fall in the Turkish Lira will exporters in fix, as Turkey is the second largest buyer of Russian wheat to Egypt.
Wheat at subsidized prices for the State reserve is purchased each year from local agriculture. The price was fixed in March. However, he is above the current market price level. Should the Government start their purchase with these prices, would create a not deliberate competition between the export and the intervention.
