IKAR in Mass and Industry Media

Russia hikes corn export duty tenfold amid bad harvest

Reuters

MOSCOW, Sept 27 (Reuters) - Russia hiked the export duty for corn almost tenfold on Friday, marking the first sign of export curbs amid lower corn crop forecasts due to extreme weather that hit key corn-producing regions this year.

The agriculture ministry said the corn export duty will rise to 2.786,2 roubles from Sept. 2, up from 292.7 roubles in the previous week.

"There is a fairly high probability that corn exports will be, to put it mildly, restricted," IKAR's consultancy Dmitry Rylko told an agriculture investor conference.

The agriculture ministry did not respond to a request for comment.

Russia exported 7 million tons of corn in the 2023/24 season with Iran, Turkey, and Libya as the main buyers. IKAR forecasts that corn exports will fall to 2.5 million tons in the coming season.

Sovecon said this week that the corn harvest will fall by 29.5% to 12 million tons, which will be the worst harvest since 2018, due to severe drought in corn-producing regions in southern and central Russia.

27.09.24

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