Russia could reduce wheat export quota

Russia is considering reducing its looming wheat export quota slightly from a previously planned 9 million tonnes, five sources familiar with discussions among officials told Reuters on Wednesday.

Russia, the world’s largest wheat exporter, has said that it would set grain and wheat export quotas for Feb. 15 to June 30 to secure domestic supply in the face of high food inflation.

Russia’s agriculture ministry did not immediately reply to a request for comment.

One of the sources said that the size of the quota could be set at 8 million tonnes of wheat. Other sources did not disclose its size.

The sources expect Russian officials to submit a draft of their proposal to the state website for laws and regulations on Wednesday, they added.

Russian wheat exports are down by 37.5% since the start of the 2021/22 marketing season on July 1, owing to a smaller crop and the export tax that rose to $91 a tonne on Wednesday.

However, the government remains concerned about securing enough grain for domestic consumers and the effect shortages would have on inflation that is already close to a six-year high.

“It looks like Russian grain exports, especially wheat, are still running at too high a rate. It looks like there will be a new warning shot to slow down,” said one source with knowledge of the negotiations.

Reuters

Tags: grain, wheat, export quotes, Russia