Miller Magazine Issue: 134 February 2021

52 INTERVIEW MILLER / february 2021 World wheat prices soared to a six-year high as top ex- porter Russia announced a wheat export tax and a grain export quota that will limit shipments to 17.5 million tons to curb “food price inflation”. Black Sea wheat prices jumped to around $300/ton. While the global markets are trying to absorb these prices, the news that Russia would impose a floating wheat export tax made the markets more uneasy. The Russian government is considering that permanent tax starting from June 1. Earlier, Russia announced a 25 euros export tax would start from February 15, but it will impose a wheat export tax of 50 euros a ton from March 1 to June 30. Russia also set a barley and corn export tax. Now the market speculates on the consequences of the Andrey Sizov Managing Director SovEcon “We believe that if a new permanent grain export tax is approved, new crops could suffer. Many farmers would prefer to plant something else, not wheat. That would have a bullish effect on new crop. There's a very big question mark over the 2022 crop. I'm afraid we could see a substantial decrease in the planting area of winter wheat this autumn, and that is likely to imply a substantially lower crop in 2022. Russia will likely lose its number one spot in the world wheat export market in the medium term.” ‘Russia to lose its top wheat exporter spot due to grain tax’