A Russia, the world’s largest exporter of wheat, may change the formula it uses to calculate its grain export taxes in the event of a large increase in prices on the global market, Agriculture Minister Dmitry Patrushev said at a government meeting on Wednesday ( 10).
The country, which supplies wheat mainly to the Middle East and Africa, has launched its formula-based tariff for the exports from June as part of measures the government hopes will help stabilize domestic inflation, which is at a 5-year high.
The Ministry of farming determines the size of the tariff weekly, based on a formula that considers the tax at 70% of the difference between the price indicators reported by traders per ton of wheat and US$ 200. The tax is at US$ 69.9 per ton of wheat between 10 and 16 November.
“In the event of a significant increase in global prices… let’s say up to $400 per tonne or more, the formula for calculating the floating export tariff will be revised upwards,” said Patrushev.
Russian wheat at 12.5% protein shipped from Black Sea ports for supply in the second half of November was at $326 a tonne (FOB) at the end of last week.
Russia also plans to set a grain export quota for the first half of 2022, including wheat, to secure domestic supply, Patrushev said.
Reference: CNN Brasil
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