Source: Oleoscope (Russia)
At the end of July, the Ministry of Finance of the Republic of Kazakhstan proposed the introduction of export duties on a range of agricultural products, reports El Dala. A uniform export duty of 50 US dollars per tonne is to be levied on a wide range of cereals as well as flax and rapeseed.
The only agricultural commodity in the republic currently subject to an export duty is sunflower seeds. The duty was introduced at the beginning of 2023 at a rate of 20% of the price, but at least 100 euros per tonne.
Sunflower producers and traders criticized the government’s decision to introduce the duty and the level of the duty. In their view, the introduction of the duty led to a fall in sunflower prices on the domestic market and reduced the profitability of production.
At the time the 100-euro duty was introduced, the price of a ton of sunflower seeds was 240 thousand tenge. Since then, the exchange rate and the cost of oilseeds have changed. Currently, the price of a ton of sunflower seeds is 150 thousand tenge. Taking into account the changes, 20% of the cost is almost twice as high as the original values and amounts to 55 euros.
Industry associations of Kazakh farmers have repeatedly appealed to the government to reconsider the level of the duty, but these appeals have been unsuccessful.
Currently, the government is still discussing the possibility of imposing tariffs on agricultural exports, and industry associations are trying to convey the risks of such a decision to government officials. The issue of export duties will only be finalized after the deliberations of the government’s interdepartmental commission with the participation of the business community.
Agriculture Minister Erbola Karashukeeva had previously reported that the country’s oil production has increased by 62% since the restrictive measures were introduced and that prices on the domestic market will fall by more than 8% in 2023.