MOSCOW, RUSSIA — In an effort to lower rising food prices, the Russian government said on Dec. 15 that it plans to impose an export tax on wheat of $30.40 per tonne between Feb. 15 and June 30, which marks the end of the country’s 2020-21 grain marketing year, according to a Reuters report.
With the measure, Russia, one of the world’s largest wheat exporters, is seeking to stabilize prices of several commodities such as flour and bread.
Economy Minister Maxim Reshetinikov told Reuters that the wheat export tax will be in addition to a grain export quota of 17.5 million tonnes that will be imposed during the same period.
He said the measures will help lower domestic milling wheat prices to $191.90 per tonne excluding taxes by the end of 2020 and $176.30 by the end of February.
The export tax would be the same for all classes of wheat, even though prices are varied, because it would be easier to manage.
Russia is one of the world’s largest wheat exporters and is expected to harvest its largest grain crop since a record 2017.