MOSCOW, RUSSIA — Russia, the world’s leading exporter, plans to cut its wheat export quota by two-thirds in 2025, Reuters reported. It will hike wheat export duties by over 18% beginning Dec. 4, 2024, and eliminate import quotas for some staple foods, Reuters reported, citing the Russian government.  

The Eurasian Economic Union (EEU) Council said Russia’s export quotas for the second part of the export season from Feb. 15 to June 30, 2025, will be 11 million tonnes, a steep reduction from the 29 million tonnes shipped during the same period of 2024. The EEU comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia and coordinates the customs and tariff policy of its members.

The large reduction in exports could have a significant impact on countries such as Egypt, Iran and Saudi Arabia that have depended on Russia for most of their wheat imports. It also could have a bullish impact on global wheat prices.

A smaller-than-expected wheat crop in 2024 related to unfavorable weather conditions in Russia’s key production regions and soaring exports in recent months were factors in the Russian government’s decision, Reuters reported.

“The decision will help smooth out fluctuations in consumer prices caused by the depletion of domestic production stocks and the need to supply the domestic market through imports, and will contribute to curbing inflation,” Russia’s economic industry said.

For the 2024-25 season, Russia is expected to produce 81 million tonnes of wheat while exporting 48 million tonnes, the Foreign Agricultural Service (FAS) of the US Department of Agriculture said in its latest forecast. If realized, both would be the country’s lowest totals since the 2021-22 season.