Reducing coefficient for companies that do not use up quota to export grain from Russia to take effect in 2025

SIRIUS. May 31 (Interfax) - A reducing coefficient for companies that do not use up their quota to export grain from Russia will take effect from 2025, Deputy Prime Minister Dmitry Patrushev said at the All-Russia Grain forum on Friday.

"Looking ahead, I'll say that next season we plan to transition to a reduction factor for exporters who do not use all their volumes up. I draw your special attention to this - those who do not use up their quota will receive reducing coefficient, and the quota will be redistributed in favor of those who are ready to increase export volumes," Patrushev said.

Patrushev said it was important to continue to improve the quota mechanism.

"I would ask the Union of Grain Exporters, together with the ministry, to continue to elaborate the quota mechanism. It is important for the ministry, together with business, to develop new approaches," he said.

The reducing coefficient in the distribution of the quota for the export of wheat, barley, corn and rye outside the EAEU was introduced by the Russian government in June 2023. According to it, the quota is divided into main and additional parts. The main part of the quota (90%) will be distributed, as before, according to the historical principle. At the same time, for each exporter decreasing coefficient equal to the percentage of quota selection in the previous period will be calculated. Thus, if a company selects 90% of the volume allocated to it, it will proportionally receive 10% less next year. The new mechanism gives exporters the right to voluntarily waive the quota or part of it. Applications for the waiver are accepted from April 1 to April 20.

The additional quota volume will consist of three parts: 10% of the total quota volume plus the volume released as a result of applying the decreasing coefficient, as well as the volume formed from waivers. Exporters who have already been allocated the main part of the quota according to the historical principle will be able to apply for an additional part.

But the Russian Agriculture Ministry has not applied the reducing coefficient this year. The additional quota included 10% of the total quota (2.4 million tonnes), the volume of voluntary waivers from the allocated volumes of the main part of the quota and 5 million tonnes added later to the total quota.