On restrictive measures for sunflower exports
Regarding the appeal of the Union of Field Breeders of Kazakhstan, published in the media, the Ministry of Agriculture reports that there are currently no restrictions on the export of sunflower. The quotas that were in effect during the periods September 2021-June 2022 and July-September 2022 have been completed. At the same time, the quota sizes (total 155 thousand tons) were set based on the balance of sunflower production and consumption. The factor taken into account is that the bulk of sunflower was exported after harvest, from December to January. The largest volumes of quotas in previous years were established in these months (50 thousand each). tons – December and January). In total, the export of sunflower seeds for January-September 2022, during the quota period, amounted to 133.9 thousand tons, while for the same period of 2021, without quotas – 113.3 thousand tons.
Thus, the introduction of quotas allowed exporters to export the volume of sunflower at a level not exceeding the volumes of previous years, and the state - to prevent a situation when, due to high demand and world prices for sunflower seeds, the domestic market for the production of sunflower oil and poultry feed in the form of cake and meal (a secondary product during sunflower processing) will remain without domestic raw materials.
Now we see a positive result of the restrictions imposed earlier on the export of sunflower. For 11 months of 2022, sunflower oil production increased by 66.6% compared to the same period in 2021. Exports amounted to 204.8 thousand tons, which is 2.5 times more than the same period in 2021 (79.9 thousand tons). In addition, 3 new plants with a processing capacity of 594 thousand tons were commissioned in 2021. Currently, the total capacity of 47 sunflower processing plants is 2.8 million tons.
Decisions on the regulation of foreign trade flows of our country, including the introduction and lifting of restrictions on the export of raw materials and other goods, are taken at meetings of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations (IEC). The IMC is a collegial body, its participants are government agencies, business represented by NCE "Atameken", industry associations are invited. All aspects of the introduction of export duties were discussed during 2022, taking into account the current and prospective growth in the volume of vegetable oil production in Kazakhstan, its consumption on the domestic market, world prices for oil and raw materials, the volume of imports of sunflower seeds, etc. The quotas actually adopted this year were introduced instead of duties.
Currently, the draft order on the entry into force of the export duty on sunflower exports, planned from the beginning of 2023, is under public discussion on the Open NPA portal, and does not provide for restrictions on export volumes (https://legalacts.egov.kz/npa/view?id=14344563). The application of export duties is a measure that allows, firstly, to maintain the average annual level of sunflower exports, secondly, to restrain the excessive export of raw materials from the country in conditions of high demand and rising prices on world markets, and thirdly, to promote the development of its own processing, production and export of value-added products. At the same time, the proceeds from the collection of export duties will be directed to the country's budget, from which the same agricultural producers are subsidized. In addition, before the entry into force of the export duty, memorandums on price stabilization will be signed with domestic sunflower oil producers, in which the selling price from the plant will be 750 tenge per liter.
The application of export duties on sunflower is a successful global practice. For example, in Ukraine, an export duty of 23% on sunflower was introduced in 1999 and applied until 2012. If in 2000 the gross harvest of sunflower in Ukraine did not exceed 3.5 million tons, then in 2021 this figure reached 16.7 million tons. The processing capacity increased from 2.6 million tons of sunflower in 2000 to 24 million tons in 2021. Thus, the introduction of export duties in Ukraine did not affect the decline in sunflower production in the country, but, on the contrary, contributed to the withdrawal of the state into the largest exporters of vegetable oil in the world (50% of total world exports).
In the Russian Federation, the export duty on the export of sunflower has been extended from July 1, 2021. At the same time, its size has almost doubled, from 165 to 320 euros per ton. According to the Fat and Oil Union of Russia, the country's production facilities are able to fully process the harvested crop.
Thus, the introduction of an export duty on the export of sunflower is a measure that is expected to have a positive effect not only on the processing industry, but also on the development of the country's economy as a whole.
https://www.gov.kz/memleket/entities/moa/press/news/details/478014?lang=ru