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Kazakhstan retains export duty on sunflower seeds

Source

APK-Inform

9720

Kazakhstan has decided to extend the export duty on sunflower seeds. The corresponding decision was made at a meeting of the Interdepartmental Commission chaired by Deputy Prime Minister Serik Zhumangarin, the press service of the Prime Minister reported on September 22.

“Having once again weighed all the results of the export duty and the current government policy course aimed at diversifying production in the country towards processing, at the IDC meeting it was decided to keep the current export duty on sunflower seeds at 20%, but not less than 100 EUR/t, no changes,” the message says.

At the same time, the National Oilseed Processors Association was asked to reach a consensus with sunflower seed producers on purchase prices, which NOPA undertook to publicly announce in the near future.

According to the Office of National Statistics, production of sunflower seeds is one of the most profitable businesses in the agriculture. The overall profitability of this oilseed in Kazakhstan is 96.4%.

More than 50 enterprises are involved in the processing of sunflower seeds in the country; the annual total processing capacity is 3.2 mln tonnes. In 2022, the loading of existing sunflower seed processing capacities (2.8 mln tonnes) amounted to 34%. In 2022, the total harvest of sunflower seeds reached 1.3 mln tonnes. In other words, today there are all the prerequisites for the complete processing of oilseeds on the domestic market, the report emphasizes.

The planting areas under the oilseed are growing: from 960.4 thsd ha in 2021 to 1 mln ha in 2022 (14%) and 1.2 mln ha in 2023 (6%). On average, the annual growth is 10%.

As for the export of sunflower seeds, in 2022, 346.8 thsd tonnes of the oilseed were shipped to foreign markets, which is 2.3 times more y-o-y (145.9 thsd tonnes).

Also Kazakhstan in increasing the production of vegetable oil: during the current season (from September 2022 to August 2023), the production of crude oil exceeded 417 thsd tonnes, up 50% y-o-y (279 thsd tonnes). Production of refined oil during the same period increased by 4.1%, to 145.3 thsd tonnes. Imports of bottled sunflower oil decreased by 15% to 35.2 thsd tonnes, in the period from September 2022 to July 2023. Thus, production is growing amid a reduction in imports, that is, there is an import substitution.

The export of processed products is increasing. In 2022, Kazakhstan exported 229.4 thsd tonnes of sunflower oil worth $319.7 mln, which is almost 3 times higher than the level of 2021 (84.9 thsd tonnes worth $98.8 mln).

At the IDC meeting, it was noted that limiting the export of raw materials and increasing the volume of processing is a global trend in the economies of neighboring countries. Countries such as Kyrgyzstan, Uzbekistan, Tajikistan, which have practically no raw materials of their own, create preferential conditions for the supply of raw materials and build processing facilities. In Kyrgyzstan, a zero VAT rate has been established for the import of sunflower seeds exclusively for the production of vegetable oil. In Uzbekistan, there is a zero duty on the import of sunflower seeds and sunflower oil. As a result, in the structure of imports of Uzbekistan, the import of sunflower seeds from Kazakhstan is leading every year. At the same time, countries that produce their own oilseeds, such as Russia and Belarus, are extending export duties and introducing export licensing.

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