Russia, the world’s largest wheat exporter, has reduced export duties on wheat, corn, and barley to zero effective December 10 — its first such move since August—following a continued decline in global grain prices.
The export levy, introduced in 2021 to shield the domestic market from rising food costs, is recalculated weekly at 70 percent of the difference between the government’s base price and the prevailing market price. With international prices weakening, the calculated duty has now fallen to zero.
According to market analysts, Russian wheat export prices dropped for the third consecutive week, pressured by abundant global supply. Moscow expects grain exports to reach between 53 and 55 million tons during the ongoing marketing season.
Despite the temporary relief, the export duty system has long frustrated Russian farmers, who argue that it reduces profitability and hampers competitiveness. Producers have blamed the fees—alongside other logistical challenges—for slowing exports earlier in the year.
The decision to zero out the duty comes as Russia seeks to maintain its dominance in global grain markets amid shifting price dynamics and increased competition.
