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. Last Updated: 07/27/2016

Grain Duty May Reach $165 a Ton

The government may impose a duty on grain exports of as much as 120 euros ($165) per ton and sell supplies from its reserve to help curb inflation as prices hover near all-time highs, an Agriculture Ministry official said Monday.

A group of officials and producers will decide this week how and when the government will take action, Sergei Sukhov, deputy head of the Agriculture Ministry's regulatory department, said Monday.

Russian Grain Union president Arkady Zlochevsky said duties of as much as 120 euros per ton were being government should wait until January before limiting grain exports and selling from intervention stocks as a higher-than-expected crop would automatically regulate prices.

He forecast a 2007 grain harvest close to 80 million tons, higher than the government's latest estimate, and said any export tariff should be pegged to world grain prices.

"We are categorically against interventions before the new year," Zlochevsky told a grains conference in Moscow.

Dmitry Rykov, director general of the Independent Institute for Agricultural Market Studies told the conference that he viewed interventions at this stage as "absurd and dangerous."

"Government stocks are low and they may yet be needed in the second half of the current marketing year," he said.

Bloomberg, Reuters