Russia to impose wheat export tax after Putin’s criticism of food price growth
16.12.2020 (www.hellenicshippingnews.com) - Russia, one of the world’s largest wheat exporters, plans to impose an export tax on the product of 25 euros ($30.4) a tonne between Feb. 15 and June 30, economy minister Maxim Reshetnikov told a government meeting.
The government has prepared a set of measures to stabilise domestic food prices following President Vladimir Putin’s criticism last week over the rising cost of bread, flour, sugar and sunflower oil.
The wheat export tax will be in addition to a grain export quota of 17.5 million tonnes to be imposed in the same period to stabilise domestic food prices, he added.
The agriculture ministry told the meeting that the measures will help cut domestic prices for milling wheat in European Russia to 14,000 roubles ($191.9) a tonne excluding taxes by year-end, and to 13,000 roubles a tonne by the end of February.
Domestic prices for third-class wheat fell by 225 roubles to 15,725 roubles per tonne last week, according to Sovecon agriculture consultancy.
Russian sugar and sunflower oil producers will agree price reductions for their product with retail chains, officials told the meeting.
If this measure does not work, Russia may impose an export tax on sunflower oil and cut import duty for sugar cane, they added.
Source: Reuters (Reporting by Polina Devitt and Darya Korsunskaya; Editing by Jan Harvey)