Russian Ministry of Agriculture Redistributes Export Quotas

The Russian Ministry of Agriculture has issued an order to reduce previously allocated tariff quotas for wheat exports. The document affects 71 exporters, 49 of whom notified the ministry that they would not be able to use their assigned volumes. As a result, 1.261 million tons of wheat have been released and can now be redistributed among active market participants.

According to grain market participants, some operators faced logistical difficulties and price conditions that made exports less attractive. Additionally, the strong ruble and full domestic storage facilities ahead of the new harvest also affected trading activity.

The total volume of the wheat export tariff quota for 2025 remains unchanged at 10.6 million tons. However, following the redistribution due to the refusal of 49 companies, an additional 1.261 million tons is now available. This brings the remaining volume available for allocation to approximately 2.679 million tons. The already allocated base portion of the quota stands at 8.6 million tons.

Redistribution Mechanism
• Legal basis. Since 2021, grain exports outside the EAEU have been subject to a tariff quota and an adjustable export duty aimed at maintaining sufficient supplies in the domestic market.
• 2025 Correction. The additional volumes will be distributed to companies that confirm their readiness to ship the grain by June 30.
• Penalty Coefficient. The ministry emphasized that when forming the 2026 quota, exporters who fail to utilize their allocated volumes in 2025 will face a reducing coefficient. This will effectively decrease their base share for the next season and is intended to encourage more precise export planning.

Thus, nearly half of the exporters failed to fulfill their quotas, freeing up 1.26 million tons of wheat. The Ministry of Agriculture will redistribute this volume among active players and tighten the allocation formula next year for those who underutilize their 2025 limits. The market receives a short-term boost for signing contracts by June 30, while companies are signaled to better plan their logistics and pricing strategies.