May 29, 2008

Strong harvest may prompt Russia to drop grain export tax

Russia plans to drop duties on grain exports in July amid expectations of a strong harvest, the agriculture minister said Wednesday (May 28, 2008).

Agriculture minister Alexei Gordeyev told reporters there was no need to introduce further limitations on grain export from July 1 considering the "decent harvest".  

The government would see what action to take depending on market conditions after that.

Current Russian duties on wheat exports stand at EUR 105 a tonne and EUR 70 a tonnes for barley.

Meanwhile, Gordeyev Wednesday also called for a shift in grain exports to processed products such as flour or compound feed as opposed to the grain itself.