Russia is going to put more regulation on grain export to control the rise of food prices.
Russian government has called for long-term measures and creation of some sort of mechanism that would regulate the grain exports from Russia, help domestic agriculture industry and curb the rising of food prices on the local market.
Russia is one of the largest exporters of commodities as we can see in different sectors – for example, in agriculture and energy. It is mainly focused on exchanges outside the country, with grain in particular. And with the global situation getting worse it is mandatory to establish some sort of mechanism to help domestic agriculture.
According to the Russian government, it is going to launch a certain grain export instrument that would operate on a permanent basis from as early as April. The new regulation for grain export will include:
1. Export tax for grains to be calculated based on a preset formula which had previously been planned to be switched to from fixed-value tariffs that was imposed on grain exports until now. The new regulation will come into effect from February 15.
2. The new mechanism is supposed to be a permanent price damper meant for preventing global price fluctuations and high prices from impacting the Russia’s domestic market.
Beginning from April 1, all of Russia’s grain exporters will have to register their contracts with due consideration and recalculation of price indicator according to the new formula.
Last year, in 2020, Russia introduced an export limit of 17.5 million tons for grain – wheat, rye, barley, and corn, to hold in the rising domestic prices until the end of the marketing year.
3. The established export tax on wheat was $30.40 USD per ton. But later, in February, the export duty for wheat went up to $60.59 USD.
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