Recently, the Russian Ministry of Industry and Trade stated that it has decided to increase export quotas for certain types of nitrogen fertilizers. According to the draft government resolution prepared and published by the Ministry of Industry, Russia plans to extend the export quota to 7 million tons of nitrogen fertilizer and 4.9 million tons of compound fertilizer from January 1 to May 31, 2023.
Earlier on November 11, Russian Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said that the country would set export tariffs on fertilizers. Government officials have prepared a draft: If the price of any fertilizer exceeds $450 a ton, the government will charge an export duty of 23.5% on the portion above $450.
According to statistics, Russia is a major producer of potash, phosphate and nitrogen fertilizers, with an annual output of more than 50 million tons, equivalent to 13% of the global output. Imposing export tariffs on chemical fertilizers will affect the global fertilizer market and even the agricultural product market to a certain extent. .
It should be pointed out that the Russian government hinted as early as September this year that it was studying the details of taxation. At that time, in the draft budget, tax and tariff policy guidelines submitted to the Duma by the Russian Ministry of Finance, the Ministry estimated that the total budget revenue from fertilizer and coal export tariffs in 2023 would be 135.6 billion rubles. Russian Finance Minister Siluanov proposed in October that the threshold for phosphorus and nitrogen fertilizers be set at US$500/ton, and that of potash fertilizer be set at US$400/ton.
According to Russian media analysis, the latest fertilizer export tax is expected to allow the Russian government to earn about 100 billion rubles in revenue, but companies in this industry will lose up to 5% of their revenue and 10% of their profits. However, due to the hot demand in the international market, it is likely that most of the taxes will be paid by the importers in the end.
Source: AgroPages
