11feb

The Russian government has approved a «grain damper» — a flexible duty on export of wheat, corn and barley, which will start being imposed from June 02, as well as new subsidies for grain producers, within which all budget revenues from export duties on grain crops will be distributed, the Cabinet of Ministers informed.
«From June 2, Russia will start imposing a flexible export duty on wheat, corn and barley. The formula for its calculation was approved by the Prime Minister Mikhail Mishustin», — the statement says.

The duty for wheat will be charged when the world price is more than $200 per tonne — the rate will be 70% of the difference between the estimated export price and this base price, for barley and corn the mechanism is the same, but the base price will be $185.

«The flexible duty will be calculated weekly, based on the price data of the previous week. The Ministry of Agriculture will be doing it. The calculation of the parameters for determining the duty based on the data of registered export contracts will begin from April 1st», — the government noted.

By another resolution, the prime minister approved the rules for supporting agricultural producers within the framework of the grain damper mechanism. «Agricultural producers will be able to receive subsidies from the state within the framework of the grain damper mechanism. ... Subsidies will be distributed to regions based on the volume of products produced. The size of the subsidy rate for agrarians will be approved by the regional authorities,» — the statement says.

According to the document, all budget revenues from duties on export of wheat and meslin, rye, barley, corn, rapeseed, sunflower and soybeans will be distributed to the regions for that purpose. At the same time, the total volume of state support for grain producers will not exceed 50% of their costs for production and sale.

Source: RIA News Agency