Source: Oleoscope (Russia)
The export duty on sunflower oil exports from Russia will be extended until September 2026, Mikhail Maltsev, Executive Director of the Russian Oil and Fat Association, told TASS. He pointed out that the duty protects the stability of prices on the domestic market from sharp changes in world market prices or the volatility of the ruble exchange rate.
“Prices on the domestic market are protected from sharp changes in world market prices or the ruble exchange rate by the export duty, which has been at zero for more than a year. Last week, it was decided to extend the export duty until September 2026,” said Maltsev.
A variable export duty on sunflower oil of 70% was introduced from September 1, 2021 to August 31, 2023. It is levied on the difference between the base price and the target price (arithmetic mean of market prices for the month), reduced by a correction factor. In June 2023, a zero tariff was set for sunflower oil.
In August 2023, the Russian government extended the duty on exports of sunflower oil and sunflower meal until August 31, 2024.
The Executive Director of the union pointed out that the prices for sunflower oil on the Russian market are stable. He pointed out that according to the results of the latest tenders for supply to the largest retail chains, the price of sunflower oil of the cheapest segment is set at 87 rubles per kg.
“Taking into account the dollar exchange rate and world market prices, we do not see any prerequisites for a significant increase in the cost of sunflower oil of the social segment,” Maltsev said. The middle and premium segments of branded products, Maltsev added, have their own marketing strategies, and prices could be higher in this category.