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Russia raises tax on grain export

  • By Al Mayadeen Net
  • Source: Agencies
  • 25 Mar 2022 18:26
2 Min Read

Duty on wheat deliveries will amount to $87 per ton, according to the Russian Agriculture Ministry.

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  • Russia raises tax on grain export
    Russia raises tax on grain export

The levy on Russian wheat exports will be increased from $86.4 per ton to $87 in the period from March 30 to April 5, the country’s Ministry of Agriculture said on Friday.

According to the statement, export tax on barley and corn will amount to $75.6 and $58.3 per ton, respectively.

Data shows the export duty rate for wheat and meslin (a mixture of wheat and rye) was calculated at an indicative price of $324.3 per ton, for barley at a price of $293.1, and for corn at $268.3 per ton.

Last summer, the Ministry launched the so-called floating tax on wheat, corn, and barley. The measure, which aimed at stabilizing domestic food prices, obliges sellers to register their export contracts on the Moscow Exchange. Based on that information, the Ministry of Agriculture determines the amount of the duty for a period of one week.

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Director-General of the United Nations Food and Agriculture Organization, Qu Dongyu, said that disruption to agricultural production in Russia and Ukraine could seriously exacerbate global food insecurity.

In a statement issued on Friday, he outlined how the two countries play a significant role in the world's food production and supply.

“Russia is the world’s largest exporter of wheat, and Ukraine is the fifth-largest. Together, they provide 19% of the world’s barley supply, 14% of wheat, and 4% of maize, making up more than one-third of global cereal exports,” he stated.

See more: The global wheat supply crisis

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The escalation of the situation in Ukraine may result in the bread wheat shortage in Egypt, Lebanon, Yemen, and other Arab countries where millions already struggle to make ends meet.

Wheat supplies from the two countries at odds are critical to the region's stability, and any shortages of the essential grain might spark instability.

If those supplies are disrupted, "the Ukraine crisis could trigger renewed protests and instability" in several Middle East and North Africa countries, the Washington-based Middle East Institute stated.

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