Kazakhstan may cancel the duty on sunseed exports

Kazakhstan is proposing to cancel the export duty on sunflower seeds starting February 15. This initiative was put forward by the Grain Union of Kazakhstan, explaining that the lifting of export restrictions is necessary “to support farmers ahead of the sowing season.”

The industry association points to the high stocks of seeds formed in the domestic market: according to the Bureau of National Statistics, by January 1, 2024, the stocks amounted to 1.074 million tons.

“The relevance of the duty abolition is also due to the fact that many farmers have not carried out the necessary drying of sunflower seeds, and the high humidity of oilseeds during storage leads to a loss of quality and reduced demand,” the union commented.

They also explain that local processors have high stocks of not only sunflower seeds, but also crude oil, as the rate of exports of finished products to China has significantly decreased since December due to logistical problems.

“The abolition of the export duty will allow farmers to sell seeds that are in demand in Uzbekistan and China at a fair price, as the difference between the domestic and export prices is about 60 thousand tenge (5 thousand UAH) per ton,” the Grain Union said.

Thus, according to their estimates, agricultural enterprises will be able to receive additional income in the amount of 13.6 billion tenge (1.13 billion UAH).

Tags: Kazakhstan, sunseed