Russia reduced wheat exports, took steps to control inflation

02-Dec-2024 08:55 AM

Russia reduced wheat exports, took steps to control inflation
Russia has made several significant adjustments to its wheat export policies in an effort to control inflation and address domestic market conditions. Here's a breakdown of the key points:

Wheat Export Quota Reduction: From February 15 to June 30, 2025, Russia will limit its wheat exports to 11 million tonnes, which is a dramatic decrease compared to the 29 million tonnes during the same period in 2024. This move is part of the country's strategy to manage its agricultural resources more tightly.

Wheat Export Duty Increase: Starting December 4, 2024, Russia's Ministry of Agriculture plans to raise the wheat export duty by over 18%. This decision is intended to curb excessive wheat exports and address domestic market concerns, such as inflation and high domestic wheat prices.

Domestic Supply and Demand Concerns: The Ministry of Economy took this step due to limited stocks of domestic wheat and increased demand within Russia. The high prices of wheat in the domestic market have prompted the government to control exports more strictly.

Forecast for Wheat Exports: The Russian Grain Exporters and Producers Union predicts that wheat exports for the 2024/2025 period could range between 47 to 52 million tonnes, depending on market conditions.

Exclusion of Other Grains from the Quota: The AUE Council's announcement also pointed out that for the upcoming 2024/2025 export period, maize and barley will no longer be part of the export quota. These grains were included in the previous quota but will now be excluded to focus on wheat.

These measures reflect Russia's efforts to stabilize its domestic agricultural market while managing its global grain exports.