A global wheat market that has seen soaring prices in recent weeks due to supply issues learned on Nov. 10 that Russia, the world’s leading wheat exporter, is considering revising its export taxes upward on the grain commodity, reports ProAgro Group citing World-Grain.com.
The report said that Dmitry Patrushev, Russia’s agriculture minister, stated in a recent government meeting that the change would occur in case of major price growth in the global market.
Food inflation in Russia is at a five-year high and the country already has a formula-based tax on grain exports which was implemented in June.
“In the event of a significant increase of the global prices, let’s say up to $400 per tonne or more, the formula for calculating the floating export duty will be revised upwards,” Patrushev said.
He added that Russia also plans to guarantee an adequate domestic supply by setting a quota on grain exports, including wheat, for the first half of 2022.
