The government extended the zero duty on wheat exports from the Russian Federation for two years at once. This time the exemption will be valid until July 1, 2021. This decision is enshrined in the relevant Government Resolution No. 830 of June 29. By the way, for such a long period the rate is not reset for the first time. Such a decision was already made in 2016. Then the exemption was introduced until July 1, 2018.
"The decision will contribute to the export of products of the agro-industrial complex," - said in the explanatory note to the document.
The term of the export duty on wheat at zero level will be extended as long as the situation allows, believes Dmitry Rylko, the general director of the Institute for Agricultural Market Studies (IKAR).
- If the situation changes radically, the rate will also change. For example, if there is a low yield and a huge export, the expert explained.
From the second half of May, export prices for the new crop continued to grow. So, according to ICAR, the cost of wheat from 12.5% protein content increased from a minimum of $ 181 to $ 188. The market is supported by slow sowing in the United States and wet weather, which threatens the quality of the new wheat harvest, explained in Sovekon. According to agency estimates, since the beginning of the season 2018/19 and as of May 23, Russia has exported 40.5 million tons of grain. This is 15% less than in the previous season. According to forecasts of the Ministry of Agriculture of the Russian Federation, in the 2019/20 season, the Russian Federation will sell abroad 45 million tons of grain, including 36 million tons of wheat. So far, export estimates of Sovecon differ a lot: only 49.4 million tons, including 38.2 million tons of wheat.