The Russian government has decided to suspend such duties until the end of the summer in order to support producers and exporters.
The current situation is not very favorable for Russian farmers, experts believe. In particular, prices for sunflower oil and meal have settled at a fairly low level today, which significantly reduces marginality.
At the same time, production costs continue to grow, which puts many companies in a very difficult position.
A significant help in the current situation could be the suspension of export duties on sunflower oil and meal.
Currently, such duties have already been suspended until August 31. It is planned that such a decision can support both producers and processors of sunflower.
“Shipments of the said products are traditionally carried out to the markets of friendly countries, which from year to year steadily purchase oil and fat products from domestic exporters.
The introduction of a “moratorium” will increase the competitiveness of Russian sunflower oil and meal on a FOB basis even if the current marginality of exporters is maintained, which will significantly increase the attractiveness of target products in comparison with alternative suppliers,” said Kirill Lozovoy, a representative of the federal center “Agroexport.”
He notes that now there is every reason for the supply of oil and meal abroad to grow, both in kind and in monetary terms.
At the same time, many agricultural producers note: despite the fact that the temporary abolition of duties is certainly positive for the market, agricultural producers need not immediate, but long-term support measures.
Thus, businesses would insist on a decision to completely abolish export restrictions, since this would allow them to significantly increase their marginality.
In turn, an increase in enterprise profits would not allow the situation that has developed now: many companies simply stop producing oil, since it is becoming unprofitable.
In general, producers expect the government to make decisions that will make the market more predictable.
The strengthening of the ruble and the rise in prices of alternative types of oils is the reality that we have to face today, experts say.
Therefore, government support is becoming very important for Russia to achieve one of its most important goals, namely, to maintain its presence in the international oil and meal market.
