In a move that could influence both global grain markets and domestic agribusiness strategies, Russia’s Ministry of Agriculture has announced a 17.1% reduction in the wheat export duty, bringing it down from 2,210.1 rubles to 1,832 rubles per metric ton, effective from April 23 to April 29, 2025.
The update comes as part of Russia’s floating export tariff system — the so-called “grain damper” mechanism — implemented in June 2021 to stabilize the domestic grain market. The system is designed to regulate export flows based on global price fluctuations while reinvesting the collected duties into agricultural subsidies to support local producers.
Adjusted Export Duties for April 23–29, 2025:
- Wheat: ↓ 17.1% to 1,832 rubles/ton
- Barley: ↓ 76% to 87.7 rubles/ton
- Corn: ↓ 21.9% to 1,073.6 rubles/ton
These reductions follow the latest indicative export contract prices, registered on the Moscow Exchange:
- Wheat: $247.4/ton (slightly down from $248.1)
- Barley: $204/ton (unchanged)
- Corn: $220.9/ton (unchanged)
The Mechanics Behind the Tariff
Export duties are calculated weekly and are pegged to the difference between base and indicative prices. As of June 28, 2024, Russia adjusted its base prices to:
- Wheat: 18,000 rubles/ton
- Barley & Corn: 16,875 rubles/ton
The export duty equals 70% of the difference between these base prices and actual contract prices. This floating model helps buffer domestic consumers and producers from volatile international prices, especially during years of high inflation or unpredictable harvests.
Originally, duties were denominated in U.S. dollars, but since July 2022, they have been calculated in rubles, aligning more closely with domestic economic conditions.
Implications for Farmers and Exporters
The lower duty on wheat and other grains may boost export competitiveness in the short term, particularly as global wheat prices remain relatively stable. According to the FAO’s Food Price Index, global wheat prices have shown only marginal changes in the last quarter, reflecting good harvests in major exporting countries like India, Australia, and Russia itself.
For Russian farmers and agribusinesses, the duty cuts can:
- Increase net returns on exported grain, especially for large exporters.
- Provide room for expanded market access, particularly in North Africa, the Middle East, and Southeast Asia.
- Help clear domestic grain surpluses, especially during years of strong harvests.
However, the fluctuating nature of the tariff also means that price planning must be dynamic and closely aligned with weekly government updates.
Support for Domestic Agriculture
A unique feature of Russia’s grain damper system is that funds collected from the export tariffs are reinvested into domestic agriculture — a policy designed to cushion farmers from the impact of variable export revenue.
In 2023, the Russian government allocated over 120 billion rubles in support measures tied directly to the grain damper mechanism, including:
- Subsidized fertilizer and fuel.
- Preferential loans for storage and logistics infrastructure.
- Regional grants for small and medium-sized agricultural enterprises.
The April 2025 reduction in Russia’s grain export duties signals both confidence in stable global pricing and a strategic push to maintain a strong presence in international grain markets. For farmers, exporters, and policy makers, staying updated on weekly tariff changes and adapting marketing strategies accordingly will be key to maximizing returns while supporting long-term agricultural sustainability.
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