Restriction of sunflower oil export from Kazakhstan will impact the oil & fat industry and agriproducers - NOPA




The restriction on sunflower oil export from Kazakhstan, needed by certain market participants, will negatively affect the oil and fat industry and hit agricultural producers, reported the National Oilseed Processors Association (NOPA) of Kazakhstan to APK-Inform.

“To date, the export duty mechanism for sunflower seeds was introduced just over a month ago. In such a short period of time, it is impossible to objectively evaluate the results of the adopted mechanism. Some entrepreneurs and traders unreasonably ask for measures to limit the export of sunflower oil, which will negatively affect the oil and fat industry as a whole. The experience of 2021/22 MY has in fact demonstrated that oil export quotas will not lead to anything good. The shutdown of oil refineries is inevitable due to limited consumption in the domestic market, and as a result, the oilseeds purchases cancelation, as a result, the agricultural producers will suffer. If it worked, then the relevant ministries would not refuse the quota mechanism,” said Yadykar Ibragimov, Chairman of the NOPA Board.

The Association noted that for 5 months of the current 2022/23 MY, the export of sunflower seeds from Kazakhstan has already exceeded the figure for the entire previous season.

Speaking about the situation in the sunflower oil market, Y. Ibragimov noted that the producers have obliged to provide the domestic market with products at a price not exceeding 750 tenge/liter (the bid price of the oil plant). At the same time, today, the plant's bid prices for sunflower oil decreased by 16% to 630-700 tenge/l.