Duty on wheat exports from Russia will be zero for the first time since its introduction
Russia will impose zero export duty on wheat from July 9–15, 2025—the first time since its grain damper mechanism began in 2021. The move aims to boost competitiveness amid falling global prices, a strong ruble, and high farming costs. Experts warn profitability may still be low despite the duty cut, due to inflation and lost export markets.
From July 9 to 15, 2025, the export duty on wheat from Russia will be zero for the first time, the Ministry of Agriculture of the Russian Federation reported. This decision is unprecedented since the introduction of the grain damper mechanism. The zeroing of the customs rate is associated with the crisis in the agro-industrial complex, caused by a number of factors, including a fall in world prices for grain due to a large harvest, an expensive ruble and high costs of farmers for resources and loans.
An additional factor that prompted the zeroing of the duty was Russia’s catastrophic loss of traditional wheat sales markets due to the high price of Russian grain. Restricted access to international markets forced the government to take such a step in order to increase the competitiveness of Russian wheat and support exports in conditions of economic pressure.
According to Dmitry Rylko, Director General of the Institute of Agricultural Market Conditions (IKAR), the zero rate will support wheat producers, but the profitability of farmers remains in question due to rising prices for means of production and the high cost of loans. “Even with a zero duty, it is difficult for farmers to ensure sufficient profitability due to the general level of inflation,” the expert noted.
The grain damper mechanism has been in effect in Russia since June 2, 2021. It provides for floating duties on the export of wheat, corn and barley and the return of funds received from them to subsidize agricultural producers. The export duty also applies to oilseed crops. In January 2025, the duty on wheat reached almost 5 thousand rubles per ton.
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Source : Ukr Agro Consult
