Russia Extends Zero Export Duty on Wheat for Another Year

Russia has extended the zero export duty on wheat until July 1, 2019, the government said on its website Friday, according to Regnum.

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, the government said.

Despite the high rates of exports the “significant grain stocks are putting pressure on the domestic market,” it added, forecasting record levels of stocks 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, the statement said.

According to an official, the volume of grain exports from the Russian Federation rose by 29.7% in January-April, following last year’s 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.