PRESS: Russian ag min wants wheat duty cancelled in 2016–2017

MOSCOW, Aug 1 (PRIME) -- Russia’s Agriculture Ministry is asking the government to be allowed to cancel the wheat export duty in the 2016–2017 agricultural year, business daily Vedomosti reported on Monday, citing a letter of the minister.

Minister Alexander Tkachyov said wheat prices have already reached a level letting the government start purchasing interventions for the state fund but it would be unreasonable to start the interventions due to a lack of budgetary money. At the same time, exports fell 7.4% on the year as of July 20 due to the duty, he said.

Russia imposed the wheat export duty in 2015. It currently amounts to 50% of the price minus 6,500 rubles per tonne, but at least 10 rubles per tonne. Russian Grain Union earlier asked Prime Minister Dmitry Medvedev to abolish the duty as it believes that the duty decreases revenue of grain producers and reduces investment attractiveness of the sector.

(67.0512 rubles – U.S. $1)

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