Floating export duty on wheat, corn and barley will be in force in Russia from June 2. A calculation formula is set by the governmental decree No117 as of February 6, 2021, informed the governmental press-service.
The duty on wheat to be 0% when the global price of wheat is lower than 200 USD/t. If the global price of wheat is higher than 200 USD/t, the duty to be 70% of the difference between the global price and basic price of 200 USD/t. The basic price for barley and corn is set at 185 USD/t.
Information about the prices of grain export contracts registered at the exchange will be used to calculate the export duty. The Ministry of Agriculture of Russia will calculate the floating duty every week with respect to the price data of the previous week. They will start to calculate parameters for determining the duty based on the information of registered export contracts from April 1.
They expect that the mechanism of “grain damper” will allow avoiding transferring of fluctuation of global prices to the domestic market.