Russia, one of the world's largest wheat exporters, may impose a higher export tax on wheat and set one on barley and corn from mid-March, its agriculture ministry said on Wednesday, in a renewed push to curb domestic food price growth. A review by Moscow officials of previously approved state measures to slow down food inflation has supported wheat futures in Paris on expectations that European Union wheat would benefit from a higher Russian tax. Russia's agriculture ministry said in a statement it had proposed an increase in the wheat export tax to 45 euro ($55) per tonne starting from March 15, a move which could affect supplies to Turkey, Egypt and Bangladesh - the largest importers of Russian wheat.
It proposed keeping the wheat export tax at a previously planned 25 euros per tonne from Feb 15 until March 15. The proposals are a toughening of measures approved by the government in December after President Vladimir Putin criticised domestic food price growth amid the COVID-19 crisis, which has hit the income of many Russians. The ministry also proposed imposing a tax on barley and corn at 10 euros/tonne and 25 euros/tonne, respectively, it said, confirming an earlier report by Reuters. Russia mainly exports barley and corn to the Middle East. Officials are due to review all the proposals on Jan. 15.