Russia To Impose Wheat Export Tax After Putin's Criticism Of Food Price Growth
Russia, one of the world's largest wheat exporters, plans to impose an export tax on the product of €25 ($30.4) a tonne between 15 February and 30 June, economy minister Maxim Reshetnikov told a government meeting on Monday.
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.
Impact On Domestic Prices
The agriculture ministry told the meeting that the measures will help cut domestic prices for milling wheat in European Russia to RUB14,000 ($191.9) a tonne excluding taxes by year-end, and to RUB13,000 a tonne by the end of February.
Domestic prices for third-class wheat fell by RUB225 to RUB15,725 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.