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The introduction of a floating export duty on wheat, meslin, barley and corn, which will start working on June 2, will prevent the impact of world prices on the domestic market, said Deputy Minister of Economic Development of the Russian Federation Vladimir Ilyichev.

“The main goal of the damper mechanism, created by us together with colleagues from the Ministry of Agriculture, is to prevent the transfer of fluctuations in external prices for products to the domestic market. It will allow promptly and automatically adjusting export duty rates depending on fluctuations in world prices. At the same time, we give grain producers and exporters a clear economic model that will allow planning investments for the development of production and participating in international tenders. It is important that the funds received in the form of income from export duties will be returned to agriculture in the form of subsidies, which will be calculated depending on the volume of production “, – noted Ilyichev, whose words are reported by the press service of the ministry.

Currently, a tariff quota for the export of grain in the amount of 17.5 million tons is applied (its validity period ends on June 30 of this year). If the quota is exceeded, the export duty rate is 50%, but not less than € 100 per ton. At the same time, until June 1, 2021, “intra-quota” rates for wheat and meslin were set at € 50 per ton, for barley – € 10 per ton, and for corn – € 25 per ton.

“The measures taken by the government have already allowed us to stabilize prices on the domestic food market. Thus, with growing world prices for wheat (average futures prices in Chicago from January to May of this year increased by 8%, to $ 260 per ton), the domestic price has decreased since the beginning of the year. by 10% and in April-May amounted to 13.3 thousand rubles per ton ($ 181 at the exchange rate as of June 1), “the Ministry of Economic Development notes.

According to Ilyichev, the measures introduced had a positive effect on consumer prices: the monthly growth rate of flour prices slowed down four times – from an average 1.6% in November 2020-January 2021 to 0.4% in February-May 2021. According to Rosstat, in April producer prices for wheat fell by 0.9% compared to the previous month.

In Russia, from June 2, 2021, a floating export duty begins to operate in relation to wheat and meslin, barley and corn within the framework of the existing damper mechanism.

The “intra-quota” export duty rate will be calculated by the Ministry of Agriculture of Russia every week based on the wheat price index of the National Commodity Exchange. This indicator was launched in April 2021 and is calculated based on Russian export prices in deep-water ports of the Black Sea. It is assumed that from July 1, the corresponding floating mechanism will apply to all volumes of these crops.

A source: TASS

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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