Russia to impose wheat export tax after Putin’s criticism of food price growth

Russia to impose wheat export tax after Putin’s criticism of food price growth

MOSCOW- Russia plans to impose an export tax on wheat, economy minister Maxim Reshetnikov told a government meeting on Monday, as part of measures to stabilise rising domestic food prices, which have been criticised by President Vladimir Putin.The export tax will be set at 25 euros ($30.4) a tonne between Feb. 15 and June 30. The export tax will be in addition to a grain export quota of 17.5 million tonnes over the same period, the minister said. U.S. wheat futures edged higher on Monday to hit a near three-week high on expectations that Russia's restrictions would boost demand for U.S. supplies. "This is likely to result in smaller Russian wheat exports due to the increased feed use of wheat domestically," Sovecon agriculture consultancy said in a note. Sovecon also said that some farmers could postpone selling their stockpile until the next 2021/22 marketing season, which starts on June 30, 2021.The tax may reduce Russia's 2020/21 wheat exports by 2-3 million tonnes to 37.8-38.8 million tonnes, Sovecon said. Export prices for Russian wheat for supply in December-January are likely to rise by 2-4%.Russia, one of the world's major wheat exporters, harvested a large wheat crop this year, but domestic prices have risen.Putin