Russia, one of the world's largest wheat exporters, imposes an export tax on the product of €25 a tonne between 15 February and 30 June. The wheat export tax will be in addition to a grain export quota of 17.5 million tonnes to be imposed in the same period to stabilise domestic food prices.

The Russian government has prepared a set of measures to stabilise domestic food prices following President Vladimir Putin's criticism over the rising cost of bread, flour, sugar and sunflower oil.

Russian Prime Minister Mikhail Mishustin signed a list of orders aimed at stabilising food prices, including a grain export quota and a wheat export tax.

The Russian food-price index has risen almost 4 per cent since the beginning of the year, but cereal prices are up 20 per cent.

Russia will impose a wheat export tax of 25 euros per ton. The export tax will run from mid-February to the end of June.  Wheat prices have been boosted by announcement of Russian export tax decision.

While analysts said the wheat tax could curb Russia’s overseas sales by about 3 million tons, they expect the nation to still be able to supply ample amounts to the world market.

Though demand from importing nations to stockpile wheat will keep inventories in key shippers tight, bumber crops in Australia and Canada will help global production reach a record this season, USDA data show.

Russia has been steadily expanding its share in the world wheat market over the past years. More than 100 countries buy Russian grain, including Egypt, the Philippines, Saudi Arabia, and more recently, Algeria has expressed its intention to buy Russian wheat.