The subcommittee on customs tariff and non-tariff regulation, protective measures in foreign trade of the Government commission on economic development and integration of Russia will consider the issue of implementation of new protective measures for Russian sunflower market amid elimination of import tariff in Turkey, informed the press-service of the Oil and Fat Union of Russia on November 5.
“Most farmers postponed selling of sunflower seed in waiting for higher prices. However, these expectations are unfounded as the protective measures preventing mass export of oilseeds should be implemented in the nearest future”, - informed the Executive Director of the Oil and Fat Union of Russia, Mikhail Maltsev.
Otherwise, the experts expect the price disparity for oilseeds and by-products will reach unprecedented 25% on “FOB Black Sea”. It will result in net loss of processing at 20-30% depending on the region.
“Amid decline of sunflower seed production in Ukraine and Russia as well as rapeseed crop in the EU, importers of oilseeds raised their demand to protect their own processors. We need to respond in kind and satisfy requirements of our processors. Otherwise, the risk of suspension of processing activity is quite obvious”, - M.Maltsev added.
In 2019/20 MY, Russia exported 1.25 mln tonnes of sunflower seed compared to 361 thsd tonnes in 2018/19 MY. It could reach 2.5 mln tonnes in 2020/21 MY if no steps are taken. The Oil and Fat Union estimated Russian sunflower crop at about 13 mln tonnes. Russian processing industry can consume the whole volume and still it would be 30% underloaded.