MOSCOW: On September 30 Russian government adopted a regulation on the new formula of wheat export duty calculation from October 01, 2015.
As it was earlier proposed by the government, the new duty formula is set at 50 percent of the customs price minus RUB 6,500/MT but not less than RUB 10/MT. It means that the level of customs price after reaching of which the duty begins to grow over RUB 10 was raised from RUB 11,000 to RUB 13,000.
In recent days the market has been waiting for the duty decision. Wheat holders sold their grain reluctantly hoping for further price increase. Experts expect some reduction of wheat export shipments at the end of September, as exporters might have restrained shipments until the new duty formula came into effect.
As a reminder, the previous wheat export duty which was introduced on July 01, 2015 was set at 50 percent of the customs price minus RUB 5,500/MT but not less than RUB 50/MT.
