Volga Baikal AGRO NEWS Update on Soybean Export Duty Introduction !!!

Soybean export duty is introduced in Russia on February 01, 2021

Volga Baikal AGRO NEWS Update on Soya Export Duty Introduction !!!

Soybean export duty is introduced in Russia on February 01, 2021.

The Fats Union expects the positive impact of this measure on the cost of soybeans and soybean meal for animal husbandry.

From February 01, 2021 Russia introduced a duty on soybean exports outside the Eurasian Economic Union (EAEU) for a period until June 30, 2021 follows from the corresponding government decree. The duty will be 30% of the customs price of the product, but not less than 165 euros per ton. The Executive Director of the Fat and Oil Union Mikhail Maltsev told RIA Novosti that the union expects a positive impact of this measure on the cost of soybeans and soybean meal for animal husbandry.

In addition, enterprises will have the opportunity to increase their purchases, for example, at the expense of Far Eastern soybeans. Also, according to Maltsev, the introduction of the duty will have a positive effect on the projects of agricultural processing companies. He also added that the export duty should keep this product on the domestic market and recalled that last season the export of soybeans amounted to a record 1.3 million tons. According to the forecast of the Fat and Oil Union, this season, meal – 587 thousand tons.

General Director of the analytical company ProZerno Vladimir Petrichenko told Agroinvestor that from September to January 390 thousand tons of soybeans were exported, and in January – 985 thousand tons.” It’s incredible, but if the duty had not been introduced, most likely, so much would not have been exported. In addition, the adopted decree on a zero tariff for railway transportation, which will be in effect for export from the Far East to the Center, Siberia and the Volga Federal District, will greatly reduce the cost of soybean supply, – he says. – This decree will be valid until December 31, however, there is already nothing special to export. Production in the Far East this year is about 1.5 million tons, but almost everything has already been shipped to China. This record export in January just canceled all plans to deliver Amur soybeans from the Far East to the central regions of Russia.”

Last year, about 1 million tons of soybeans were exported, Petrichenko notes. “So if there were no duties, the export would be comparable to last year’s season, because the harvest is about the same, especially in the Far East,” the expert said. According to him, the duty will not affect the prices of soybeans in the European part of Russia, because soybeans are not supplied to foreign markets from here, prices in the European part of Russia are guided by imports. “Introducing an export duty is a very big and serious damage for agricultural producers in the Far East,” Petrichenko is sure. “Moreover, export duties have also been introduced on wheat and corn.”

At the end of December, the Ministry of Agriculture Amur region sent an appeal to the Russian government with a request to reduce the duty on soybean exports from 30% to 20%. According to Regional Agriculture Minister Oleg Turkov, the Amur Region is a leader in soybean cultivation in Russia and agricultural production in the Far East, and the decision to impose the duty may negatively affect the agricultural business of the Far East, which exports soybeans to China. At the same time, he noted that the Amur Region does not receive 2 billion rubles from every 100 thousand tons of soybeans exported without processing from the region.

“Vesti Amurskaya Oblast” reports that local agricultural producers are now asking to reduce the temporary duty on soybean exports from 30% to 10%. The agrarians made such a statement at a meeting of the State Duma committee on regional policy, problems of the North and the Far East. Deputy Andrey Kuzmin and the executive director of the branch of the Association of Peasant Farms Vladimir Yusupov spoke on behalf of the farmers. In their opinion, the introduction of customs duties from February 1 may be followed by the bankruptcy of the soyevods. “We believe that 30% is an exorbitant level. Our offer is 10%. This is a kind of compromise, our proposal, taking into account the interests of the processors and the population of Russia, because we understand that we are not extremists and we want a balance of interests,” – Yusupov said (quoted by Vesti Amur Region).

Experts previously interviewed by Agroinvestor unanimously noted that the introduction of a duty of 30% is too harsh a measure. So, the president of the Russian Grain Union Arkady Zlochevsky believes that restrictions on the export of soybeans are not needed at all. He noted that with the introduction of the duty, it is likely that farmers will begin to hold back the sale of soybeans until the new agricultural year, when the duty will cease to be in effect. Dmitry Rylko, general director of the Institute for Agrarian Market Studies, said that the duty would lead to a gradual decrease in agricultural crops in the Far Eastern Federal District, but added that it was not clear what to grow there instead of soybeans. Director of the analytical center SovEcon Andrey Sizov is also sure that there is no need for a duty. In his opinion, the introduction of the duty means stagnation of crop production in the Far East, and maybe even a worsening of the situation in the sector. Sizov also drew attention to the strangeness of the fact that, on the one hand, soybean production is subsidized as part of an export project to increase supplies, on the other hand, it is planned to limit its supplies by a duty.

“The duty is due to the rise in world prices for these products and is aimed at providing raw materials for processing industries within the country. The decision is made to prevent the rise in prices for soybean processing products – soybean oil and soybean meal used in the food industry,” – the Ministry of Economic Development explained earlier. The government also raised export duties on sunflower and rapeseed from 6.5% to 30% of their customs value.

Source: Agroinvestor.ru

Volga Baikal AGRO News Update ......

Agriculture News Russia and World Grain News !!!