Russia cuts wheat export quota by two-thirds to stabilize domestic prices

RUSSIA – Russia, the world’s largest wheat exporter, has announced a reduction in its wheat export quota for 2025, slashing it by two-thirds from the previous year.

The Russian government’s decision to stabilize food prices amid rising costs of essential goods aims to combat inflation and ensure domestic food security.

Introduced in 2020, Russia’s wheat export quotas protect domestic markets and prevent sharp price increases.

The Eurasian Economic Union (EEU) Council confirmed the new quota for wheat exports will be limited to 11 million metric tons from February 15 to June 30, 2025, a stark decrease from the 29 million metric tons allocated for the same period in 2024.

This measure coincides with an 18% hike in wheat export duties, effective December 4, and the removal of import quotas for select staple foods such as potatoes, carrots, apples, and butter.

“We are strengthening control over the export of agricultural products to prioritize the supply of the domestic market,” Deputy Prime Minister Dmitry Patrushev stated.

According to Patrushev, these measures should stabilize the price situation and ensure the affordability of basic goods for our citizens.

Inflation remains a pressing issue for Russia, currently at 8.5%. Prices of essential food items, including butter, potatoes, and bread, have surged this year, with butter costs increasing by 32%, potatoes by nearly 80%, and bread by 13%, according to government statistics.

To address these issues, the government is encouraging long-term contracts between retailers and producers while working with regional authorities to stabilize prices on key staples.

The government is working to increase food imports from “friendly” countries, Patrushev said, while the EEU Council said it introduced duty-free quotas for imports of potatoes, carrots, apples and butter.

Russia allows grain exports quota-free from July to January, the first half of the export season, and then implements quotas among about 260 domestic traders authorized to sell grain internationally from Feb. 15 to June 30.

Analysts believe the measures will cushion domestic supply and help stabilize consumer prices, though they also introduce uncertainty for international buyers.

Countries heavily reliant on Russian wheat, including Egypt, Iran, Turkey, Algeria, and Saudi Arabia, are expected to closely monitor the situation.

Despite the cut, Russia is projected to maintain its position as the top global wheat exporter, with total exports for 2024/2025 estimated between 47 and 52 million tons.

Eduard Zernin, head of the Russian Grain Exporters and Producers Union, emphasized the dual responsibility of supporting domestic stability while addressing global food security.

 “The food security of the people in the countries to which we supply Russian wheat is much more important to us,” Zernin said.

The new export quota is part of a series of adjustments to Russia’s grain export policies. In 2024, the initial wheat quota of 24 million tons was increased by 5 million tons following record grain exports of over 72 million tons during the previous season.

For the 2025 quota period, corn and barley have been excluded, further concentrating restrictions on wheat.

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