Russian Federation raises taxes on cereal exports between March and June 2021


On 26 January 2021, the Ministry of Economy enacted a new policy on cereal exports, which set the tax on wheat exports at EUR 50 (about USD 61) per tonne for the period from 1 March to 30 June. In addition, a flat tax for barley and maize exports was introduced and set at EUR 10 per tonne and EUR 25 per tonne, respectively, to be enforced from 15 March to 30 June. The new policy complements a previous policy, sanctioned in December 2020 (FPMA Food Policy), in which the tax for wheat exports was set at EUR 25 (about USD 30) per tonne for the period 15 February to 30 June 2021 along with a quota for cereal exports, including wheat, rye, barley and maize, of 17.5 million tonnes. The new measures seek to halt a sustained upward trend in domestic prices for food staples since early 2020, amid concerns of rising inflation having a negative impact on consumers’ access to food. In January 2021, prices of wheat and maize were on average 30 and 60 percent, respectively, higher than their year-earlier levels.

Country: Russian Federation