Russia has extended the zero export duty on wheat until July 1, 2019, the government said on its website Friday.
The country canceled the export duty on grain on September 26, 2016 to be effective until July 1, 2018.
But in view of high stocks and in order to safeguard the “stable situation on the domestic grain market” it decided to extend the measure for another year.
Despite the high rates of exports the “significant grain stocks are putting pressure on the domestic market,” the government said, adding that record levels of stocks are forecast for the end of the 2017-18 agricultural year. This could lead to higher exports and therefore the government has decided to extend the zero duty for another year.
According to data from Novorossiisk Commercial Sea Port, exports of grain rose 29.7% in January-April, following a bumper harvest.
The grains harvest in the 2017-18 marketing year will be the largest in the country’s history, according to the agriculture ministry.
Source: PlattsPrevious Next