INSUBCONTINENT EXCLUSIVE:
Russia has raised its wheat export tax by 41%, from 1,328.30 rubles to 1,872 rubles ($333) per metric ton, effective October 16, 2024
Bids ranged from $230 to $243 FOB (free on board) at the October 7 auction
The increase may aim to curb Russian sales to other countries, as exports have reportedly exceeded reasonable levels.The influential grain
exporters union has accused unnamed exporters of shipping excessive volumes at low prices
They plan to ask the Agriculture Ministry to review the quota distribution system for the second half of the season.Russia Hikes Wheat
Export Tax by 41% Amid Closed-Door Talks with Exporters
(Photo Internet reproduction)Currently, the ministry allocates export quotas from February 15 to June 30
Some traders believe the tax increase could have been more significant.One European trader commented that the market might fall, as people
had anticipated higher risks
lowered its official harvest estimate from 132 million to 130 million tons
This adjustment comes despite unfavorable weather affecting many grain-producing regions this year.Russia Hikes Wheat Export Tax by 41% Amid
Closed-Door Talks with ExportersThe government appears to be taking steps to reduce wheat exports and keep domestic bread prices low
The country has been struggling with inflation, currently around 9%.The central bank is expected to raise interest rates further this month
from the current 19%, the highest since April 2022
Independent consultancy Sovecon has published lower grain harvest estimates, forecasting 122.9 million tons.Russian farmers have harvested
122 million tons of grain so far, from 92% of the sown area
domestic grain consumption at 85-87 million tons, with the remainder available for export.
