Ministry of Agriculture Considers Reducing Export Tariffs on Grain by Year-End
The Ministry of Agriculture is considering removing the export levy on wheat, barley, and corn by year-end due to rising military risks in the Black and Azov Seas and a significant domestic surplus. These factors have caused grain prices in some regions to drop below production costs, despite high global prices.
The Ministry of Agriculture plans to eliminate the variable export levy on wheat, barley, and corn by the end of the year. This proposal is made against the backdrop of increasing military risks and domestic surplus problems. The main reason for this possible step is the escalation of military risks in the Black and Azov Seas. These maritime areas are of crucial importance for the export sector, as over 70 percent of the entire Russian grain export passes through them. Despite globally high prices, sellers are currently facing logistical difficulties that hinder sales. Furthermore, there is a domestic surplus, which has led to a price decline; in regions such as Krasnodar and Stavropol Krai, prices have even fallen below production costs.