Russia: Wheat export slowed after tax launched



After Russia imposed export tax on wheat, everything slowed down related to export. Obviously main state goal is to keep local situation under control as much is possible and not to risk by allowing excessive export due to low ruble.

Rouble still falling and only last year fell 40 percent against the USD. Weaker rouble is better for Russian export but Government does not think so. Export tax or a duty on wheat is 15 percent of the customs price plus 7.5 Eur/t and will be no less than 35 Eur/t until the end of 2014/15 marketing year on June 30. This tax was only imposed on wheat and some traders can now shift to sell other cereals abroad. Lot of exporters are switching to export of corn and barley. Phytosanitory controls remain tough. Several vessels with wheat for Egypt have been stuck at Russian ports.