Russia bans hard wheat exports until end of spring; Armenia among exemptions

PanARMENIAN.Net - Russian Prime Minister Mikhail Mishustin has signed an order to ban exports of hard wheat until May 31, 2024 with the aim of ensuring the country’s food security and supporting price stability for hard wheat products on the domestic market, Interfax reports.

The ban goes into effect the moment the government order is published and will remain in effect until May 31, 2024.

The order provides for a number of exemptions from the ban, including hard wheat exports for international humanitarian aid and under international intergovernmental agreements, shipments to Abkhazia and South Ossetia, and grain shipped as provisions.

Hard wheat can also be exported to other Eurasian Economic Union (EAEU) countries, including Armenia, within the bounds of the quota set by the government order given that permits have been issued by the Agriculture Ministry.

The export ban was proposed by the Agriculture Ministry and supported by the customs subcommittee. The ministry argued that global hard wheat production fell this year, with harvests dropping to 20-year lows in most producing countries, so there is stronger demand. The export ban will ensure full supplies of wheat for makers of pasta products in Russia, the ministry said.

The ministry also said that there are plans to expand Russia's hard wheat crop area and increase production with every year.

Grain market exports attribute the ban on exports of hard wheat, which is used for production of pasta products, to the surge in exports this season.

The Russian Grain Union estimated that hard wheat exports jumped 13-fold year-on-year to 657,000 tonnes in the period from July 1 to November 10. The growth was facilitated by the current grain damper, under which the export duty is calculated based on the indicative price for all wheat. As a result, the share of the duty in the price for hard wheat is far smaller, the union said. This wheat is purchased by Italy and Turkey, among others.