Moscow. August 1. The RF Ministry of agriculture has prepared proposals to the government to abolish export duty on wheat.
According to the letter of the Ministry of agriculture to Deputy Prime Minister Arkady Dvorkovich, seen by “Interfax”, the Department asks to consider the possibility of establishing a zero rate of export duty on wheat. The need for this, the Ministry of agriculture explains that currently the fee actually has no regulatory impact. But it has led to the fact that grain exporters have abandoned the practice of long-term supply in excess of two months. This is because when fixing the price of forward contracts, there may be additional risks due to possible changes of the ruble.
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The transition from exporters long-term to short-term contracts reduced the volume of purchases in the domestic market in the period of mass arrivals of grain. This can lead to a further fall in prices, says the USDA.
The Department reports that the mass flow of grain of the new harvest in June-July in the European part of the country has reduced the price of wheat 3 and 4 classes at 13%, wheat 5 class – 17%. And the price has dropped below the maximum level of minimum prices under which the state should pursue the purchase of intervention, the volume of which in the current agricultural year (July 2016-June 2017) should reach 2 million tons.
However, there is a shortage of Federal funds for procurement of intervention and maintenance of intervention Fund grains. According to some, he is about 2.5 billion rubles.
Therefore, I believe in the Ministry of agriculture, the promotion of grain exports can reverse the negative trend of falling prices in the domestic market and to ensure the required profitability of grain producers.
In a press-service of the Ministry of agriculture does not comment, promising to provide the position of Department later.
Earlier, the agriculture Ministry said that prepares proposals on stabilization of the situation on the grain market. A number of participants of the July meeting on this subject held under the chairmanship of Minister of agriculture Alexander Tkachev, said that it was including the abolition of export duties. And it expressed not only business representatives, but also officials.
In the Secretariat of Deputy Prime Minister Arkady Dvorkovich declined to comment.
As the Vice-President of the Russian grain Union Alexander Korbut, the restriction of grain exports is irrational. “The export duty deprives producers of the revenues that they could obtain if not for that restrictive measures,” he said. – Because the main risks inherent in the production.
The Korbut recalled that Grain Union “consistently opposed this measure.”
According to him, currently, the export tax creates new risks, in particular exchange rate differences. “Evaluating them, exporters are afraid to work “long arm”, can not conclude long-term contracts, ” he said. These risks do not enable export cleaner “which removed the excess grain from the South.”
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According to Korbut, in these circumstances, the business can not be stable and predictable. “So he’ll be passive,” he said.
And the second risk is enclosed in the projected surplus production of grain this year, which will put pressure on the market and deprive farmers of incentives to its production next year,” – said Korbut.
According to him, if by the end of harvest climatic conditions are favorable, according to some estimates, the grain harvest may reach 115 million tons. “With the price point of view, this is a pessimistic prediction because in this case the price of grain “fail” and stop this fall will be very difficult,” he said.
As for the promised procurement interventions on the grain market, said Korbut, they will not have a significant impact on prices. “Due to budgetary constraints, the purchase can not be larger, to the same intervention will be extremely local in nature,” he said.
The Russian government introduced export duties on wheat in February 2015. First she was nominated in EUR, then created a formula for calculating the fees in rubles. On the first of October 2015 it is 50% of the customs value minus 6.5 thousand rubles, but not less than ten rubles per ton.
In the last marketing year (July 2015-June 2016) Russia, according to the Ministry of agriculture exported 33.9 million tons of grain.
This agricultural year (July 2016-June 2017) exports projected at the level of 33-34 million tons. From the first on 27 July, the exports amounted to 1,716 million tons of grain, which is 7.4% more than in the corresponding period last year (1 million 598 thousand tons).