Source: Oleoscope (Russia)
Russian edible oils export duty calculations show an expected increase for sunflower oil and sunflower meal in April. Moreover, according to the latest data, Russian sunflower oil exporters will face an increased fiscal burden in April.
Russian Edible Oils Export Duty: Calculation Methodology
Preliminary calculations, based on Moscow Commodity Exchange quotes and current currency market dynamics, show a steady increase in the indicative price. Consequently, this will directly impact the export duty.
Currently, the indicative price per ton of sunflower oil has settled at almost $1,270.90. Furthermore, in ruble terms, taking into account the five-day average exchange rate of 77 rubles per dollar, this amount amounts to 97,859 rubles per ton. If the current exchange rate corridor remains unchanged, the preliminary export duty for April could increase by 11% to 10,752 rubles per tonne. Additionally, this is 1,065 rubles higher than the March figure previously approved by the Ministry of Agriculture (9,687 rubles per tonne).
Exchange Rate Scenarios and Meal Duty
With the dollar exchange rate ranging from 75 to 80 rubles, the duty could range from 8,972 to 13,420 rubles per tonne. Meanwhile, each ruble increase or decrease in the exchange rate corresponds to an 890 ruble rate.
Despite the increase in the indicative price of sunflower meal for calculating the duty for April to $203.80 or 15,692.6 rubles per tonne, the calculated rate will remain at the previous level of -0 rubles.
At the current price of the product, the duty threshold will be exceeded if the dollar strengthens to 78 rubles or higher.