Today a tax on wheat exports from Russia comes into operation. Its size is 15% of the customs value of the consignment plus €7.5 but not less than €35 per ton.The government announced this measure in December 2014, to reduce the attractiveness of Russian grain sales to foreign markets and stabilize prices of flour and bread in the country. For example, a ton of grain on the Chicago Stock Exchange in December was $265 per ton, while the domestic price was at the level of 11 thousand rubles. Thus, exports were 50% more attractive than domestic sales, reports TASS.Following the decrease in supply of grain in Russia in November and December 2014, prices for flour and bread have risen. This growth must be stopped by April 2015, Deputy Prime Minister Arkady Dvorkovich said earlier. He also noted that since the onset of the tax, additional administrative barriers to slow exports are no longer needed, so the government plans to remove them.As Dvorkovich reported, Russian prices for food wheat amounted to 10.9 thousand rubles ($130-140) per ton, while the export price was 14 thousand rubles ($200) per ton."We must remove this difference, and we will do it," he said. Dvorkovich estimates that in spring the rise in prices on the domestic grain market must cease.Producers of grain are against the imposition of restrictions on exports. They accused the authorities of making untransparent decisions, which, according to them, undermine the credibility of Russia and threaten the food security of the country.The Russian Grain Union claimed then that Rosselkhoznadzor had stopped issuing export certificates for grain and Russian Railways stopped shipments of grain for export, though the official ban on grain exports had not been started yet.In 2014, Russia harvested 105 million tons of grain - together with reserves it is 118 million tons. Domestic demand is about 70 million tons.However, exporters in anticipation of the start of the tax increased wheat exports from Russia by 30% (to 495 thousand tons) in the first two weeks of 2015 compared to the same period in 2014.According to the Federal Antimonopoly Service, in January 2015 the price of bread in the country has increased by 15-20% compared to prices in January last year.The tax will last till the middle of this year
Today a tax on wheat exports from Russia comes into operation. Its size is 15% of the customs value of the consignment plus €7.5 but not less than €35 per ton.
The government announced this measure in December 2014, to reduce the attractiveness of Russian grain sales to foreign markets and stabilize prices of flour and bread in the country. For example, a ton of grain on the Chicago Stock Exchange in December was $265 per ton, while the domestic price was at the level of 11 thousand rubles. Thus, exports were 50% more attractive than domestic sales, reports TASS.
Following the decrease in supply of grain in Russia in November and December 2014, prices for flour and bread have risen. This growth must be stopped by April 2015, Deputy Prime Minister Arkady Dvorkovich said earlier. He also noted that since the onset of the tax, additional administrative barriers to slow exports are no longer needed, so the government plans to remove them. As Dvorkovich reported, Russian prices for food wheat amounted to 10.9 thousand rubles ($130-140) per ton, while the export price was 14 thousand rubles ($200) per ton.
"We must remove this difference, and we will do it," he said. Dvorkovich estimates that in spring the rise in prices on the domestic grain market must cease.
Producers of grain are against the imposition of restrictions on exports. They accused the authorities of making untransparent decisions, which, according to them, undermine the credibility of Russia and threaten the food security of the country. The Russian Grain Union claimed then that Rosselkhoznadzor had stopped issuing export certificates for grain and Russian Railways stopped shipments of grain for export, though the official ban on grain exports had not been started yet.
In 2014, Russia harvested 105 million tons of grain - together with reserves it is 118 million tons. Domestic demand is about 70 million tons.
However, exporters in anticipation of the start of the tax increased wheat exports from Russia by 30% (to 495 thousand tons) in the first two weeks of 2015 compared to the same period in 2014.
According to the Federal Antimonopoly Service, in January 2015 the price of bread in the country has increased by 15-20% compared to prices in January last year. The tax will last till the middle of this year
