Russian min says ending wheat export duty to hike bread prices

MOSCOW, Feb 29 (PRIME) -- The abolishment of export duties on wheat can lead to a significant growth of bread prices in Russia, Agriculture Minister Alexander Tkachyov told reporters Monday.

“We believe there are no reasons yet to revise it (export duty on wheat), it plays a very important role taking into account instability of the financial market,” he said.

“If we decrease grain prices, this will lead to a significant growth of bread prices.”

The Agriculture Ministry earlier proposed to keep the export duty on wheat, although it should be reduced close to zero.

Russia imposed a wheat export duty on July 1, which is measured as 50% of the price minus 6,500 rubles per tonne, but at least 10 rubles per tonne.

(75.0903 rubles – U.S. $1)

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