Russia Plans to Raise Export Duties on Oilseeds and Introduce Export Duty on Linseed
According to Mikhail Maltsev, executive director of the Oil and Fat Union, there are plans to increase tariffs on oilseed exports and introduce an export duty on linseed. According to him, it is proposed to set the duty on flax exports at 20%. The export duty on sunflower and rapeseed is proposed to be increased to 70%, but not less than $490 per tonne. "These changes should come into effect on 1 April," he said.
On 23 March, the head of the Ministry of Agriculture, Dmitry Patrushev, proposed at a meeting with Russian dictator Vladimir Putin to introduce quotas on the export of sunflower oil and meal in order to maintain a stable situation on the sunflower oil market. This proposal has already been sent to the Ministry of Economic Development.
The minister does not see any difficulties in the availability of sunflower oil, "also due to the previously adopted measures of the customs and tariff regime".
According to Patrushev's report, Putin instructed the Ministry of Agriculture, together with regional authorities, to closely monitor the situation with prices and products in retail chains and to promptly respond to emerging difficulties.
"I hope that you, together with your colleagues in the regions, will closely monitor how the situation in retail chains is developing so that you can react promptly to current events. In that sense, we have a high enough level of reliability. The most important thing here is that there are no logistical problems and timely operational response," Putin said.
A source in the oil and fats market told Interfax that the quota for sunflower oil is expected to be distributed among producers on a historical basis. Out-of-quota supplies are subject to a 70% duty, but not less than $1,000 per tonne.
A similar distribution mechanism has been proposed for the export quota for sunflower meal. For the delivery of flour within the quota, it is also proposed to set a sliding duty of 70% of the difference between the price of the flour based on FOB Argentina and $185 per tonne.
Since 1 September, Russia has had a sliding tariff on exports of sunflower oil. Its level is 70% of the difference between the base price ($1000 per tonne) and the target price (arithmetic average of market prices for the month), reduced by the value of the correction factor ($50 per 1 tonne). This mechanism is valid until 31 August 2022. In addition, export duties limit the delivery of sunflower, soybeans and rapeseed abroad.
On 23 March, the head of the Ministry of Agriculture, Dmitry Patrushev, proposed at a meeting with Russian dictator Vladimir Putin to introduce quotas on the export of sunflower oil and meal in order to maintain a stable situation on the sunflower oil market. This proposal has already been sent to the Ministry of Economic Development.
The minister does not see any difficulties in the availability of sunflower oil, "also due to the previously adopted measures of the customs and tariff regime".
According to Patrushev's report, Putin instructed the Ministry of Agriculture, together with regional authorities, to closely monitor the situation with prices and products in retail chains and to promptly respond to emerging difficulties.
"I hope that you, together with your colleagues in the regions, will closely monitor how the situation in retail chains is developing so that you can react promptly to current events. In that sense, we have a high enough level of reliability. The most important thing here is that there are no logistical problems and timely operational response," Putin said.
A source in the oil and fats market told Interfax that the quota for sunflower oil is expected to be distributed among producers on a historical basis. Out-of-quota supplies are subject to a 70% duty, but not less than $1,000 per tonne.
A similar distribution mechanism has been proposed for the export quota for sunflower meal. For the delivery of flour within the quota, it is also proposed to set a sliding duty of 70% of the difference between the price of the flour based on FOB Argentina and $185 per tonne.
Since 1 September, Russia has had a sliding tariff on exports of sunflower oil. Its level is 70% of the difference between the base price ($1000 per tonne) and the target price (arithmetic average of market prices for the month), reduced by the value of the correction factor ($50 per 1 tonne). This mechanism is valid until 31 August 2022. In addition, export duties limit the delivery of sunflower, soybeans and rapeseed abroad.