Rusagro announces approval of new grain export duty calculation rules in Russia10.02.21
On 6 February 2021, Russian Prime Minister Mikhail Mishustin signed a decree on a new formula for calculating export duties on wheat, corn and barley. According to this formula, for the wheat world price of up to $ 200 per tonne the duty is zero and for the price higher than this base price the duty is calculated as 70% of the difference between the world and base prices of $200. For barley and corn the base price of $185 per tonne has been established.
The basis for duty calculation will be the prices of contracts registered on the exchange for the supply of a particular crop. The amount of the duty will be calculated weekly by the Ministry of Agriculture, according to the final prices for the previous week. The calculation of the parameters required for the formula in addition to prices will begin on 1 April 2021.
Government is going to use proceeds from duties to support agricultural producers. However, this support will be insufficient to fully cover losses associated with selling price decline due to new grain export duties. Thus, Rusagro is planning to decrease share of grains in its land bank crop structure in 2021.