Russia: Russian officials remove import duty on wheat

Russian officials have chosen to remove the 5% import duty on wheat in an attempt offer alternative options to relatively high priced domestic supplies, the government announced on February, 4.

The move is expected to facilitate an additional 300 thousand tonnes of imports, raising the forecast for season long imports to 1.3 mln tonnes. Year ending stocks were forecast to be 7.7 mln tonnes, above the USDA’s estimate of 5.60 mln tonnes but the lowest since 2007/8.

The USDA forecast global imports at 139 mln tonnes so an extra 300 thousand tonnes demand from Russia would be relatively small in global terms, analysts said.

Imports from Kazakhstan which make up the bulk of imports in a normal year are already duty free.

08 February, 2013