New Year’s «greetings» from the government for exporters

In connection with the introduction of duties on the export of wheat, the forecast of its export will be revised.

12/16/2020 The Ministry of Industry and Trade, the Ministry of Agriculture, food producers and the largest retail chains signed an agreement to limit prices for sugar and sunflower oil.

In order for agrarians to pay more attention to the domestic market, the government introduced a number of additional restrictions for exporters.

In addition to the already announced quota for the export of wheat in the amount of 15 million tons, which will be in effect from February 15, 2021 to June 30, 2021, an export duty is introduced, which for wheat is 25 euros per 1 ton.

Exports over the quota will become meaningless, because they will be subject to a duty of 50% of the value and at least 100 euros per ton.

These restrictions will affect products exported outside the Customs Union.

From January 9, an increased export duty for sunflower and rapeseed will come into effect — 30%. The duty on seeds will be at least 165 euros per ton.

In addition, The government has prepared a draft restrictions on the export of sunflower oil.

According to the draft resolution, the export duty on the finished product may be 15%, but not less than 135 euros per ton.

All these measures were introduced against the backdrop of a multiple rise in the price of socially significant products to keep prices down on the domestic market.

But we must not forget that the cost of the announced goods is inextricably linked with the exchange market, and not only the Russian one.

And the impact of changes in the ruble exchange rate relative to other currencies on these goods is inevitable.

Although the last week discussed the rise in prices for sugar and sunflower oil, wheat also got on the restrictive list.

At the same time, it is strange that other significant products, such as buckwheat, potatoes, carrots, for which prices have also increased significantly, were not affected by the restrictions.

Although they are not listed on exchanges either.


The situation on the wheat export market is now difficult.

The world price was already 40-50% higher than last year, and taking into account the introduction of restrictions in the country, which occupies one of the leading positions in the wheat export market, it crossed the threshold of $ 250 per ton.

According to analysts, manufacturers are punished with a duty.

Budget revenues will definitely increase, but it is not a fact that duties or even a ban will lead to a decrease in price increases for consumers.

At the same time the estimated volume of wheat exports this season, experts reduce, approximately by 3 million tons.

So far, there is exactly one result of the imposed restrictions: for the first time since June this year, Russia lost the tender of the Egyptian state agency GASC, which has been buying Russian grain for many years.

Although the trades were for grain for delivery on February 1-15, 2021, and the duty will begin to apply from February 15, exporters have added the risk of being hit by the duty to the price, thus proving to be the most uncompetitive.

GASC purchased 235 thousand tons of wheat from Ukraine and Romania.