Russia Doubles Grain Export Tariffs Amid Food Shortage Concerns... "Measure to Stabilize Food Market"

Export Tariffs on Wheat, Corn, Barley Raised Simultaneously
Putin Angered by Food Price Hikes...Urgent Measures Taken

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Russian government has implemented a modern-day grain embargo by doubling export tariffs on major domestic grains, raising concerns about a surge in international grain prices. Prices of key grains such as wheat, corn, and soybeans have already been sharply rising due to recent raw material price hikes, prompting fears of a worsening global food crisis.

According to Russia's state-run TASS news agency, on the 26th (local time), Russian Prime Minister Mikhail Mishustin announced a temporary increase in export tariffs on domestically produced wheat to stabilize food market prices. From March 1 to June 30, the Russian government will impose a tariff of 50 euros (approximately 67,000 KRW) per ton on domestic wheat. This is double the previous tariff of 25 euros, effectively restricting grain exports. Grains exported to Eurasian Economic Union (EAEU) member countries such as Belarus, Kazakhstan, Armenia, and Kyrgyzstan are exempt from the tariff increase.

Additionally, the Russian government will impose export tariffs of 25 euros per ton on corn and 10 euros per ton on barley from March 15 to June 30, and a 30% tariff on domestically produced soybeans exported from April 1. Export volumes of grains such as wheat and rye will also be limited to 17.5 million tons.

Regarding this strong grain embargo, the Russian Ministry of Economic Development explained that "these measures aim to stabilize the domestic food market." Analysts suggest that this move follows President Vladimir Putin’s dissatisfaction expressed at a cabinet meeting late last year over the significant price increases of some food products made from grains despite sufficient domestic grain harvests, prompting related departments to implement various emergency measures.

Bloomberg News analyzed that the main reason for this policy is to appease Russian public sentiment, which has been severely affected by income reductions and rising food prices following the COVID-19 pandemic.

This content was produced with the assistance of AI translation services.