From January 1, 2021, the export duty on the export of sunflower seeds may rise to 30%.
For almost a year, the Fat and Oil Union has been fighting for an increase in duties on the export of sunflower, or the introduction of restrictive measures on the export of raw materials abroad.
By the present moment, according to representatives of the union of converters, a critical situation has developed, which some experts call a “collapse” in the market.
What happened?
Over the last season of 2019/20 Russia sharply increased the export of sunflower: if in 2018/19 361 thousand tons were exported, then in 2019/2020 1.25 million tons were exported.
This season, analysts predict a further doubling to 2.5 million tons.
In the main importing countries, such as Russia and Ukraine, the current year shows a significant decrease in yields. Also, rapeseed crop failure is predicted in Europe.
In Russia, sunflower remains to be harvested from about 2% of the area. 12.9 million tonnes in bunker weight were threshed, which is 1.5 million tonnes less than a year ago. At the same time, the average yield decreased by 2.7 centners per hectare to 15.8 centners per hectare.
Accordingly, the price of seeds went up sharply: 33 125 rubles. per ton.
Sunflower oil rose in price to RUB 76,425. per ton.
Both indicators are record-breaking.
The estimated volume of the harvest this year is between 11.5 and 13 million tons, according to various sources.
And Russian converters are ready to accept all this volume. But even it will be enough only for 70% of enterprises’ workload.
Importing countries strive to provide their processing enterprises with raw materials as much as possible, taking various regulatory measures.
So, for example, Turkey announced the zeroing of import duties on sunflower. This rate will be valid until June 30, 2021.
Let’s remind that earlier this figure was 3% plus $ 100 per ton.
Such a statement from Turkey, according to the processors, will provoke a 25% increase in sunflower prices in the domestic market (by 10 thousand rubles per ton).
As a result, in anticipation of higher prices, most producers stopped selling raw materials, which led the market to collapse.
From September 1 to October 4, Russia increased shipments of sunflower by 10.2 times, compared with the same period last year, up to 54.8 thousand tons.
At the same time, Turkey accounted for 40.6% of supplies.
The Oil and Fat Union offered the Ministry of Agriculture several instruments that could restrain the export of seeds: this is a temporary export ban, an increase in export duties, and a ban on exports to companies that received state support for the development of crop production last year.
On November 9, 2020, a meeting of the subcommittee on customs and tariff regulation and non-tariff regulation was held.
Official statements from the departments have not yet been published, but some sources in the industry and in the market report that Russia may raise the export duty on sunflower seeds to 30% from January 2021.
Last year, the export of sunflower oil amounted to 3.7 million tons — an absolute record.
This is 64% of all sunflower oil produced in the country.
Russia is striving to increase sales abroad of fully processed products with maximum added value.
Therefore, the export of sunflower seeds is not subject to duty.
