The Ministry of Economic Development proposes to extend the duty on the export of sunflower, oil and meal from Russia for another year, until August 31, 2024.
In addition, the department proposes to increase the estimated (base) price in the duty for sunflower meal, from 13,875 rubles to 15,875 rubles per ton.
Currently, the sunflower duty is 50%, at least $320 per ton.
Initially, the sunflower duty was introduced from July 1, 2021 and was valid until the end of August 2022, then it was extended until August 31, 2023.
With a high probability it will be extended this time. After all, as the Minister of Agriculture of the Russian Federation Dmitry Patrushev said on the sidelines of the St. Petersburg International Economic Forum, the duty is supposed to be kept until all Russian capacities of oil extraction plants are fully loaded with work.
At the same time, it is the export duty on raw materials (sunflower) that is the most effective measure that helps to ensure the loading of such enterprises.
For example, last year it was possible to produce 6.4 million tons of butter, which is a 10% increase compared to 2021.
Who buys Russian sunflower?
The main importers of this type of product are the states that are members of the Eurasian Economic Union (EAEU). Including Kazakhstan.
In the first half of this year, he imported 117,000 tons of sunflower, which is 9% less than in the same period last year.
What are the prospects for the price of vegetable oil?
It is currently on the rise in the world market.
In particular, this is due to Russia’s withdrawal from the Ukrainian grain deal, and therefore there is a high risk that Ukrainian products will not be able to leave the country.
In addition, there are other factors that contribute to keeping vegetable oil prices high.
For example, these are delays in harvesting that occur today in different regions of Russia due to weather conditions.
Sunflower prices are now also rising, as Russian oil refineries buy it for the future, in order to stock up enough raw materials for autumn processing.
By the way, Russia enters the new season with record sunflower stocks of 2 million tons, because many producers are in no hurry to sell it at low prices, but are waiting for their increase.
At the same time, the duty on the export of sunflower oil from the Russian Federation is not currently in effect: the country is fully provided with it, and since this is a finished product, and not raw material, there is no point in preventing the export of its excess from the country.
