Russia close to cutting tax on wheat exports

London

RUSSIA is planning to reduce curbs on wheat shipments, which may lead to an even bigger glut of grain worldwide. Policy makers are working out the details for cutting the current tax on exports, Deputy Prime Minister Arkady Dvorkovich told reporters Wednesday outside Moscow, adding that the change may happen in May. The government, which started the wheat duty in February as a way to rein in food prices, had previously said it would remain in place until the new crop marketing year starts July 1.

The country, last year's fourth-biggest wheat exporter, has sought to protect domestic grain supplies amid surging food inflation and a weakening ruble. Since the tax was put in place, shipments from Russia plunged by more than half and importers shifted purchases to other suppliers including the European Union.