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Russia raised corn export tariffs nearly tenfold on Friday.
The Russian Ministry of Agriculture announced that starting from October 2nd, the corn export tax will be raised from 292.7 rubles per ton the previous week to 2.786.2 rubles per ton.
Industry insiders say that this year, Russia's major corn producing areas have been hit by extreme weather, resulting in a downward revision of corn production forecasts, which may prompt the Russian Ministry of Agriculture to significantly increase export tariffs. Dimitri Rilke, the head of consulting firm KIAR, commented at an industry conference that, to put it mildly, corn exports are likely to be restricted. Russia exported 7 million tons of corn in 2023/24, and Iran, Türkiye and Libya are the main buyers.
IKAR predicts that the export volume of corn in 2024/25 will decrease to 2.5 million tons. This week, it was announced that due to severe drought in the southern and central corn producing regions of Russia, the corn harvest is expected to be 12 million tons, a year-on-year decrease of 29.5%, marking the lowest production since 2018.