Volga Baikal AGRO NEWS Update on the Export of Sunflower Oil and Meals !!!

Volga Baikal AGRO NEWS Update on the Export of Sunflower Oil and Meals !!!

The Russian government has increased quotas for the export of sunflower oil and meals !!!

The quota for the supply of sunflower oil has been increased up to 1.9 million tons, oilcake – up to 850 thousand tons.

The Russian government has set additional quotas for the export of sunflower oil and cake from the country, according to the website of the Cabinet. The quota for the export of sunflower oil has been increased by 400,000 tons, oilcake – by 150,000 tons, while the previously allowable supply volumes were 1.5 and 0.7 million tons, respectively. Quotas are valid until August 31 inclusive. “The decision was made taking into account the full supply of such products to the domestic market. It will allow to support manufacturers, as they will be able to carry out additional deliveries of their products abroad,” the message says.

Deliveries of oil and meal within the quota are subject to floating duties. The duty on oil is 70% of the difference between the base (82,500 rubles/ton) and indicative (arithmetic average of monthly market prices) prices. The duty on sunflower meal is calculated as the difference between the indicative (arithmetic average of market prices for the month) and base (13,875 rubles/t) prices, multiplied by the value of the adjustment coefficient (0.7). Since July, duties have been calculated in rubles, previously they were in dollars.

As First Deputy Minister of Agriculture Oksana Lut noted, the Ministry of Agriculture flexibly adapts regulatory tools based on the needs and capabilities of the domestic market. “Currently, the provision of Russia with sunflower oil and cake is at a very high level, which allows us to expand the export window for domestic companies. In this way, they will be able to generate additional income, justify the significant investments they have made in processing facilities in recent years, and continue to develop effectively,” she said. “On the other hand, we will increase our contribution to global food security and be able to help foreign partners who today need high-quality domestic fat and oil products.”

Mikhail Maltsev, director of the Oil and Fat Union of Russia, told reporters that the increase in quotas “will help the industry make the most of its export potential.” According to the expert, together with the revision of the formula for calculating the export duty, which took into account the change in the exchange rate of the ruble, this tool will allow the oil and fat industry to increase production volumes and increase shipments of products for export. Maltsev stressed that against the backdrop of a large harvest of the current season and significant carryover of raw materials for the industry, this is extremely important.

Eduard Zernin, Chairman of the Board of the Union of Grain Exporters, also supported the increase in export quotas. “The government consistently demonstrates the priority of national food security and openness in addressing the problems of world hunger. As soon as the security of the domestic market was at an acceptable level, the surplus was allowed to be exported to needy countries. We hope that such a flexible approach will continue to be applied to grain crops, which will make it possible to more fully realize Russia’s export potential,” he said.

Business representatives also supported the government’s decision. Thus, Irina Logacheva, General Director of the largest sunflower producer in Russia, the Bio-ton agricultural corporation, noted that the increase in export quotas will support agricultural producers, some of which end the season with high sunflower carry-overs. In her opinion, the new quotas will create additional demand from processors and will allow to sell the remains of the old crop before harvesting the new one.

According to Vladislav Romantsev, Strategic Development Director of Efko Group, the volume of the quota is calculated in such a way that it makes it possible to fully meet the needs of the domestic market and maximize the load on the work of domestic oil and fat enterprises. “At the same time, additional volumes of products supplied by our companies to the world market will help Russia once again confirm its status as a reliable food supplier,” – he concluded.

Source: Specagro News

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