IKAR in Mass and Industry Media

Russia preparing formula-based export tax on sunflower oil for 1 year

Reuters

MOSCOW, March 27 (Reuters) - Russia plans to impose an export tax on sunflower oil for one year from Sept. 1 set at 70% of the difference between its indicative price per tonne and $1,000, the economy and agriculture ministries said in a statement on Saturday.

Russia has imposed several export taxes for grains and sunseeds, among other measures, since December in its battle to tame rising food inflation amid the coronavirus pandemic.

The indicative price per tonne in the formula would be determined based on' data, the ministries said.

The formula-based tax would help to make the market more predictable and to maintain stable prices for sunflower oil in the domestic market, they added.

The country also plans to impose an export tax on sunflower seeds between July 1, 2021 and Sept. 1, 2022 at 50% of its price, but not less than $320 per tonne, the ministry added.

The duty for sunseeds is currently set in euro at a lower level, and sources of Interfax news agency expected officials to propose it at 320 euro ($377.5) per tonne earlier in March.

Russian officials said earlier this week that the duty on sunflower seeds was going to be in effect restrictive as the government wants all of the seeds to be processed inside the country to help stabilise prices for sunflower oil.

Russian export sunflower oil prices were at $1,550 or $1,515 per tonne, according to Sovecon and IKAR consultancies, at the end of last week. The domestic sunflower seeds prices were at 49,275 roubles ($651) per tonne, according to Sovecon.

($1 = 75.6480 roubles)
($1 = 0.8477 euros)

27.03.21

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