Volga Baikal AGRO NEWS Update on Soybean Export !!!

Export duty for soybeans will be 30%

Volga Baikal AGRO NEWS Update on Soybean Export !!!

Export duty for soybeans will be 30%. It is supposed to be introduced from February 01, 2021.

From February 01 to June 30, 2021, an export duty on soybeans will be in effect in the amount of 30%, but not less than 165 euros per ton. Now export of soybeans is not taxed. This decision was made at a meeting of the subcommittee on customs and tariff regulation, Interfax reported, citing a press release from the Ministry of Economic Development. The ministry clarifies that the initiative to introduce the duty came from the Ministry of Agriculture.

“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 taken to prevent a rise in prices for soybean processing products – soybean oil and soybean meal used in the food industry,” – explained the Ministry of Economic Development.

The Fat and Oil Union previously planned to submit a proposal to introduce an export duty on soybeans in Russia at a rate of 20%. “The introduction of the duty is necessary to restrain soybean exports, which have been growing rapidly over the past six months. We expect that this measure will help to adjust domestic prices and increase the production of finished soybean products,’ – explained Press Service of the Union to Agroinvestor. 

According to the Agroexport center subordinated to the Ministry of Agriculture, as of December 13, Russia supplied soybeans to foreign markets for $ 428 million, while in the same period last year – for $ 246 million. From the beginning of the 2020/21 season to December 15, 0.6 million tons – 28% more than in the previous season, – reports the Center for Grain Quality Assessment. The soybean harvest this year, according to the Ministry of Agriculture, remained approximately at the level of 2019 – 4.4 million tons.

Earlier, industry analysts told to Agroinvestor: ”The introduction of duties on the export of soybeans will be a serious blow to agricultural producers in the Far East. The macro-region accounts for about 2 million tons of agricultural production, about half is shipped abroad, in particular to China. If the duty is to be introduced, then the farmers of the Far Eastern Federal District need to subsidize the transportation of soybeans within the country, since now it is unprofitable for them to transport part of their products for processing to the European part of the country, – said Vladimir Petrichenko,general director of the analytical company ProZerno 

During a big press conference, President Vladimir Putin called as a mistake to support Russian agricultural exports during the pandemic: the supplies were already profitable. At the same time, the desire of producers not to miss out on the benefits due to the high prices prevailing in the world market led to an increase in the cost of food inside the country – “domestic prices began to” drag “towards what is in the price parameters on the world market,” – he said. “But this is fixable, the main thing is that here they also do not damage the industry by administrative actions, but work in a market mechanism, including timely application of certain measures of customs regulation when exporting food,” – V.Putin said (quoted from the transcript of the press conference).

Earlier, Prime Minister Mikhail Mishustin signed a decree to increase the export duty on sunflower from 6.5% to 30%. The export of rapeseed was similarly limited. In addition, it was decided to introduce an export duty on wheat in the amount of 25 euros per tonne from February 15, it will operate in parallel with the quota for grain export in the amount of 17.5 million tons. The Ministry of economic development also submitted to the government a draft resolution on the possibility of introducing export customs duties on sunflower oil in the amount of 15% (not less than 135 euros per ton). This measure will be introduced in case of violation of the agreement between producers and retailers to constrain oil prices. Industry analysts warn that in the end all these measures may lead to a reduction in agricultural production.

Source: Agroinvestor.ru

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