The Ministry of Agriculture of Kazakhstan offers to introduce export tariff quotas for sunflower seeds




The Ministry of Agriculture of Kazakhstan has already sent proposals to issue tariff quotas for the export of sunflower seeds and recalculate the balance to processors. Saule Zhurynova, Director of the Department of Agricultural Food Markets and Processing of Agricultural Products of the Ministry of Agriculture of the Republic of Kazakhstan, announced this at a meeting of relevant departments and oilseed market participants.

According to the press service of the Ministry of Trade and Integration, on May 27, under the chairmanship of the First Vice Minister of Trade and Integration of the Republic of Kazakhstan Arman Shakkaliev, a meeting was held with the deputy of the Majilis of the Parliament of the Republic of Kazakhstan Aidarbek Khodzhanazarov, producers of sunflower seeds, representatives of the Ministry of Agriculture, National Chamber of Entrepreneurs "Atameken", industry associations and unions, processing enterprises and trading companies.

The meeting participants discussed the current situation in the fat and oil industry, in particular, the consequences of introducing an export duty on sunflower seeds.

On February 4, 2023, in Kazakhstan, the order to impose an export duty on the export of sunflower seeds in the amount of 20%, but not less than EUR 100 per ton, entered into force. Earlier, starting in 2020, the government of Kazakhstan used sunflower seeds export quotas. As a result of the application of quotas, the production of sunflower oil increased by 10.2% to 331,135 thsd tonnes in 2021 compared to 2020. In 2022, the growth totaled another 10% – to 537,149 thsd tonnes

In 2022, the export of sunflower oil from Kazakhstan increased by 2.5 times and amounted to 229 thsd tonnes (85 thsd tonnes in 2021).

The Ministry of Trade clarified that in January-March 2023, the export of Kazakh oil increased by 46% year-on-year and reached 68.6 thsd tonnes. At the same time, the production of sunflower cake increased by 98%, and its export doubled.

"As for the cost of sunflower oil, an agreement has now been reached with oilseed processors to fix prices for crude oil at the level of 590 tenge per liter, refined oil at 750 tenge per liter. The price-fixing agreement is valid until August 31, 2023. These prices are calculated taking into account the current level of prices for energy carriers, fuels and lubricants, components and services," the Ministry of Trade said in a statement.

Today, there is a 3% drop in sunflower oil prices across the country (in May 2023 compared to December 2022). The average retail price for 1 liter of product amount to 860 tenge (according to May data).

The introduction of the export duty was due to the need for further development of the processing sector of the economy and provision of the domestic market, capacity utilization of domestic oil producers, increase in production and export of products with added value, explained the Ministry of Trade.