The reaction of the world market to the introduction of export duties on grain by Russia was not in Russia’s favor.
In the first half of the 2020/21 agricultural year, Egypt became the leader in the purchase of Russian wheat, having shipped 5 597 thousand tons..
GASC (Egyptian State Agricultural Agency) prefers to buy wheat using the OTC market — through a system of monthly tenders, in which several traders participate.
And last year Russia became the main winner of such tenders.
However, unfavorable weather conditions and the imposition of restrictive measures and export duties on grain by the Russian authorities led to the fact that the next tender, the delivery of which should be executed in February, was canceled due to for the high prices offered by Russian sellers.
Russia, in turn, due to the rise in world prices for wheat due to weather conditions and a decrease in harvest in many countries (the cost of futures on the Chicago Stock Exchange on reference varieties have exceeded world highs), imposed an export duty of 25 euros per tonne from 15 February 2021.
Such measures are aimed primarily at reducing the export of culture abroad and, as a result, at stabilizing prices on the domestic Russian market.
Before the January tender was canceled, GASC received only one offer from Russian traders, which was significantly less profitable than similar offers from Romanian and French suppliers.
As a result of the fact that world prices have risen, despite the tightening of export rules from Russia, the government is considering the possibility of further increasing the duty — up to 50 euros per ton.
According to the latest information, at the end of the week, the subcommittee on customs regulation and protective measures in foreign trade of the Ministry of Economic Development will consider the need to adjust the resolution, which was adopted at the end of December and included an increase in export duties for wheat.
