Russia cuts wheat exports in move to contain inflation
MOSCOW — Russia, the world’s largest wheat exporter, cut its 2025 export quota by two-thirds, hiked wheat-export duties and abandoned import quotas for some staple foods on Friday as the government moved to curb inflation.
The Eurasian Economic Union (EEU) Council said Russia’s export quotas for the second part of the export season from Feb. 15 to June 30, 2025, will be 11 million metric tons, down from 29 million tons in the same period this year.
The EEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia and coordinates the customs and tariff policy of its members.
In a separate announcement, Russia’s agriculture ministry hiked the wheat-export duty by over 18% from Dec. 4.
“We are strengthening control over the export of agricultural products to prioritize the supply of the domestic market. These measures should stabilize the price situation,” said Deputy Prime Minister Dmitry Patrushev.
Mr. Patrushev said the government encouraged retailers to set long-term contracts with producers of potatoes and vegetables while regional authorities were working with retailers to stabilize prices for butter, sugar and bread.
The government is working to increase food imports from “friendly” countries, Mr. Patrushev said, while the EEU Council said it introduced duty-free quotas for imports of potatoes, carrots, apples and butter.
Russia allows grain exports quota-free from July to January, the first half of the export season, and then implements quotas among about 260 domestic traders authorized to sell grain internationally from Feb. 15 to June 30.
Analysts expected the export-quota cut, which resulted from the high export pace in recent months and a worse-than-expected harvest due to bad weather in most Russian wheat-producing regions.
“The decision will help smooth out fluctuations in consumer prices caused by the depletion of domestic production stocks and the need to supply the domestic market through imports, and will contribute to curbing inflation,” Russia’s economy ministry said in a statement.
The measures will be closely watched by Russia’s biggest wheat buyers, Egypt, Iran, Turkey, Algeria and Saudi Arabia.
Moscow has been looking to curb exports of staple foods and boost imports as it fights inflation at 8.5%. Price growth for butter, bread, dairy products and potatoes caused particular concern.
Butter prices were up 32% this year while prices for potatoes were up almost 80% and prices for bread climbed 13%, according to official statistics.
Russia introduced wheat-export quotas in 2020 to protect the domestic market.
The Russian Grain Exporters and Producers Union expects wheat exports in 2024/2025 of 47 million to 52 million tons, which it says will be enough for Russia to remain the top wheat exporter.
“However, the food security of the people in the countries to which we supply Russian wheat and other grain products is much more important to us,” said the union’s head Eduard Zernin.
At the start of 2024, the original quota of 24 million tons was increased a further 5 million tons against the backdrop of the previous season’s record grain exports, estimated at no less than 72 million tons.
The EEU Council statement said the quota for the same period of 2024 included corn and barley, which were excluded from the quota in the coming season. — Reuters
