Russia to set prohibitive export duty on sunflower seed since July 1

Source

APK-Inform

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Russia implements prohibitive export duty on sunflower seed since July 1. A damper mechanism for sunflower oil export is planned to be implemented since September 1, 2021, declared the Minister of Economic Development of Russia, Maxim Reshetnikov on March 25.

“The export duty for sunflower seed will be prohibitive, as the supply of the oilseed is not enough. Processing capacities are much higher than the supply of sunflower seed. Thus, we are interested in processing of all available volume of sunflower seed domestically”, the minister explained. The size of the duty will be adjusted according to the current one.

The damper mechanism for sunflower oil export will come in force since September 1. “We will consider the crop size before the implementation of the damper”, - the Minister said. It will be formed the same as the grain one with a cut-off price and a duty at 70% from the price difference.  

The duty will be directed to farmers. The cut-off price is under discussion, “it contains sufficient profitability for farmers”, he said.

He added that they would not implement the export duty on sunflower oil prior to September 1.

Previously, market sources informed that the export duty on sunflower seed may be raised to 50% but not less than 320 EUR/t (currently it is 30% but not less than 165 EUR/t). The cut-off price for the damper mechanism for sunflower oil export may be set at 1000 RUR/t.

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