Russia is going to increase the export duty of sunflower seeds up to 20%

According to Interfax, a source in the agricultural sector familiar with the minutes of a meeting of the subcommittee on customs and tariff and non-tariff regulation and protective measures in foreign trade held in mid-May, the commission found it expedient to increase the rate for the period from February 1 to August 31, 2021.

The Ministry of Economic Development has been instructed to submit a corresponding draft government decree by September 15 of this year.

In addition, the subcommittee found it appropriate to extend until 31 August this year the ban on the export of sunflower, introduced on April 12 by decision of the EEC. Currently, the ban is valid until June 30 this year. The Ministry of Economic Development was instructed to prepare and send the relevant materials to the EEC for further consideration.

Proposals for changing the regime of sunflower export have been discussed for a long time. Proponents of reinforcing restrictions insist that this will reduce the price of it to load refining capacities and thereby increase the output and export of products with high margins. Opponents say that this decision reduces incentives for the development of sunflower production and the use of modern technologies in its cultivation. The result may be stagnation of production, adjustment of sown areas under sunflower seeds and, as a result, a reduction in the raw material base for processors.

Despite the current export restriction, sunflower prices are rising. According to the departmental monitoring of the Ministry of Agriculture of the Russian Federation, to which the Center for Agricultural Analytics refers to the department, on June 4, the average price of sunflower amounted to 21,904 rubles per ton, which is 317 rubles more than May 28, and 3,177 rubles exceeds the figure in early June 2019 of the year. The most expensive sunflower is in the Central Federal District. Sunflower oil is also getting more expensive.

The Center for Agricultural Analysts also believes that prices for sunflower and sunflower oil will receive support due to the low level of residues. By May 1, 2020, stocks of sunflower seeds in agricultural organizations of Russia (without small enterprises) decreased by 30.1% compared to the same date in 2019. Rising prices will also contribute to rising world prices for sunflower oil, according to a report from the Center.