January 8, 2008

Russia announces increase in grain export duties to 40 percent

Russia will impose a 40-percent export duty on grains including wheat from January 29 to April 30, 2008 as bread products become pricier.

Agriculture Minister Alexei Gordeyev said that this is a necessary intervention to address the rising prices of bread and food products.

With the surge of global grain prices, producers are gearing to export as much as they can, leading to possible shortage in the local market.

Russia's Agriculture Ministry estimated that exports will go between 12.5 million and 13 million tonnes of grain by February 1, 2008, after a harvest of 81 million tonnes of grain in 2007.

Gordeyev further explained that the levy might be lifted depending on harvest forecasts in April.