OREANDA-NEWS  The duty rate on wheat exports from Russia will increase by 2.4% from June 12, according to the Ministry of Agriculture. The new rate will be 2,845.3 rubles per ton, up from 2,778.1 rubles a week earlier.

Duties on barley and corn, however, will remain at zero. The rates for these commodities were calculated based on indicative prices, which were $235.7 for wheat, $167.3 for barley, and $170.2 for corn. These rates will be in effect until June 18.Starting from June 2nd, 2021, the Russian Federation has introduced a grain export duty mechanism that provides for floating export taxes on wheat, corn, and barley, as well as the return of funds received from these exports to subsidize agricultural producers.

The amount of duty is calculated weekly based on indicators based on export contract prices that are registered on the Moscow Stock Exchange. Initially, duty rates were calculated in dollars, but since July 2022 they have been determined in rubles. The duty is 70% of the difference between the base and indicative prices.

Since June 2023, the base price used for calculating export duty on wheat has increased to 17,000 rubles per ton from 15,000, while the base price for barley and corn has increased to 15,875 rubles per ton from 13,875.

This measure was introduced by the Ministry of Agriculture of the Russian Federation to support domestic agriculture and ensure food security.