The State Duma Agrarian Committee proposed to cancel duties on the export of sunflower

© Igor Samokhvalov/PG

In Russia, there is a critical situation with sunflower prices. In order not to start a series of bankruptcies of agricultural producers, it is necessary to zero the export duty on the export of sunflower, said Nikolai Goncharov, deputy chairman of the State Duma Committee on Agrarian Issues, at a committee meeting on March 22.

“The price of sunflower seeds has fallen from 30 to 20 rubles per ton over the past 2-3 weeks. This means that, taking into account the costs of logistics, agricultural producers are forced to sell products actually at cost (16-17 rubles) or even at a loss,” the deputy said.

The reason for the disproportion that has arisen, according to Goncharov, is that the receipt of products from the new regions that became part of Russia was not taken into account in a timely manner. The situation is particularly acute in the Rostov region, where the supply of sunflower far exceeded the processing capacity of the oil and fat industry. “According to economic laws, a 2 percent oversupply of products on the market “drops” the price of it by 30 percent, and this is exactly what we are seeing now,” states Goncharov.

The lack of income by peasants jeopardizes spring sowing in the southern regions. In addition, the reduction of areas under sunflower crops may begin. To prevent negative consequences, according to the deputy, urgent intervention of the state is required. As concrete steps, Nikolai Goncharov proposes to cancel the export duty on sunflower export (now it is at the level of 50 percent and is essentially protective) and introduce quotas for its export. “By slightly opening the export corridor, we will support sunflower producers and save volumes for the oil and fat industry,” he notes.

The Agrarian Committee of the State Duma supports the position and this week they intend to send a letter to the Government with the above proposals.

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