Kazakh farmers call for subsidy cuts to oilseed processors using imported raw materials

The Association of Agricultural Producers of Kazakhstan’s Kostanay Region has urged the Ministry of Agriculture to revise state policies governing the oilseed market. Farmers propose making subsidies, preferential loans and transport benefits available to oilseed processing plants only if they use 100% domestically produced raw materials. They are also calling for a temporary suspension of the export duty on sunflower seed, according to APK Novosti.

Kazakhstan currently imposes an export duty on sunflower seed of 20% of its customs value, but no less than €100 per ton. According to the association, these restrictions prevent farmers from freely accessing international markets and weaken competition among buyers. Producers argue that Kazakhstan’s domestic sunflower seed crop is sufficient to meet the raw material requirements of local processing facilities.

Farmers also warn that Russia’s record sunflower seed harvest could increase shipments of Russian sunflower oil to Kazakhstan and other Central Asian countries, putting additional pressure on the regional market. The association says export restrictions force local farmers to sell sunflower seed at prices offered by processors rather than prices determined by competition and the balance of supply and demand.

The association welcomed Kazakhstan’s temporary restrictions on raw material imports but considers them insufficient to address the industry’s problems. According to its representatives, processors already benefit from substantial government support, including preferential financing, transport subsidies, reduced railway tariffs and direct subsidies for oilseed processing and feed production. Meanwhile, sunflower seed growers remain limited in their choice of export markets.

To create more balanced competitive conditions, farmers propose linking all government support for processors to the exclusive use of domestically produced raw materials. The association also calls for suspending the sunflower seed export duty whenever domestic processing plants have sufficient raw material supplies. The proposals have been submitted to Kazakhstan’s Ministry of Agriculture for consideration at the national level.

Tags: Russia, Kazakhstan, prices, sunseed