The Ministry of Agriculture of the Russian Federation suggests changing the export tariffs for wheat

According to the new formula, the export tariff is not reset to zero but it is to be minimum de-facto. The Ministry of Agriculture of the Russian Federation prepared the draft decree of the abolition of the export tariffs for wheat since May 15.

Simultaneously the Ministry suggested introducing the new formula for calculation of the tariff: the minimum rate is suggested to be 1 Euro, the maximum rate is to be calculated according to the market situation.

The present export tariff for wheat is 15% from the customs cost plus 7.5 Euro, but not less than 35 Euros for a ton. It was introduced on February 1.

This formula is very complicated, the Ministry supposes. According to the new formula, the tariff is not reset to zero, but it is to be minimum de-facto.

Creating the new formula, specialists took into consideration the fact that on the domestic market prices for crops are to be preserved on the level of 12,000 rubles per ton, the Ministry explained. In case the price is lower than 12,000 rubles, the payments are to be only 1 Euro per ton. The Ministry of Agriculture of the Russian Federation emphasizes that it is not a restrictive approach but an indicative one.

“It is very important for us the price for crops to be attractive for farmers. Farmers live by selling crops, that is why what we are doing is fair and right”, noted the Minister of Agriculture of the Russian Federation Nikolai Tkachev.