UPDATE: Russian min says ending wheat export duty to hike bread prices

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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.

The current wheat export duty must be in force at least until July, Tkachyov said.

“Until the situation on the financial market stabilizes, this formula will be in force this year, or in the first half of the year, the Agricultural Ministry takes this view,” the minister said.

(75.0903 rubles – U.S. $1)

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