June 24, 2011
Russia may impose grain export duties on wheat
Russia could impose a grain export duty if wheat prices reached RUB6,500 (US$230) per tonne, Russian First Deputy Prime Minister Viktor Zubkov said on Thursday (Jun 23).
"We already talked about that and there is no big secret about that: if the price of grade 3 and 4 wheat jumps to 6,500 rubles RUB6,500 (US$230) per tonne, this (export duty) is possible," Zubkov told local reporters.
However, Zubkov said there was currently no need for an export duty, as the current wheat price was about RUB1,000 (US$35.3).
Russia is expected to lift its grain export ban from July 1. The ban was imposed on August 15, 2010 after a severe drought destroyed crops in the majority of the country's agricultural regions.
Russian Central Bank Chairman Sergei Ignatyev proposed in May to introduce floating export duties on grain to ease the consequences of lifting the grain ban. He also said a resumption of exports was the only serious factor that could spur inflation.
Ignatyev's idea was echoed by Russian Economic Development Minister Elvira Nailing, who said the Central Bank's proposal could become an effective measure to regulate the grain market.