Russia will apply a higher export tax on wheat from March 1. The Russian government announced this on Tuesday, January 26.
To curb the increase in domestic food prices (due to the corona pandemic), Russia presented a proposal to increase the export tariff on wheat. This plan was approved by the Russian government on Tuesday, January 26 and will therefore take effect on March 1, 2021.
From February 15 to July 1 a higher rate already applies (€25 per tonne), but between March 1 and June 30 this will be further increased. The export tax during that period amounts to €50 per ton of wheat. At the same time, the export tax for barley and corn will be €1 and €2021 per tonne respectively as of March 10, 25.
Reduce domestic prices
By increasing export taxes, the Russian government hopes to stem the rise in domestic prices as a result of the corona crisis. The country had a good harvest and many countries are working hard on this. Despite the price increases, Russian wheat remains quite competitive. The idea is that this higher export rate makes it less interesting to export your own wheat, causing prices to drop. That is good for the domestic market, the Russians expect.
The confirmation from the Russian ministry ensured that the Matif quotation for wheat took another step upwards: +€6,50 per tonne to €229,75 per tonne. The price for wheat also rose slightly on the CBoT in Chicago, to $6,65 per bushel.