July 2, 2008

Russia ends wheat and barley export duty

Russia will no longer charge wheat and barley export duty as of July 1, the agriculture ministry confirmed Tuesday (July 1, 2008).

The government imposed export duty on wheat and barley Nov. 12, 2007, in order to prevent prices rising on the domestic market as prices offered on the international markets became more attractive.

The wheat export duty was originally 10 percent but was raised to 40 percent in January; the barley export duty of 30 percent, imposed in November 2007, remained unchanged.

In the first 11 months of the 2007-2008 marketing year Russia exported 11.6 million tonnes of wheat, some 7 percent more than a year ago. Grain stocks in Russia on Jun. 1 totaled 11.26 million tonnes, 1.2 percent more than on the same date a year ago.

The agriculture ministry expects a grain harvest of 85 million tonnes this year, 3 million tonnes more than in 2007. The greater harvest would enable the country to export 15 million tonnes of grain in the 2008-2009 marketing year.