Kazakhstan may reduce export duty on sunseed following recommendation of Antimonopoly Committee

Kazakhstan’s Antimonopoly Committee has concluded that the current export duty on sunflower seeds is incorrectly structured and economically unviable. According to the report by the Agency for Protection and Development of Competition (AZRK), the duty negatively affects farmers, who are operating at a loss, even though processing companies continue to export. The committee recommended gradually lowering the export duty to support the development of the agricultural sector.

At the Mazhilis Committee on Agricultural Affairs, MP Nurzhan Ashimbetov noted that farmers’ warehouses are overflowing with sunflower seeds, with some products stored outdoors, and export sales are difficult. “Farmers in the Pavlodar region report working at a loss, even though they see opportunities to export, for example, to China, while paying an additional 100 euros as export duty,” he said.

Ashimbetov added that the issue was discussed by the Interdepartmental Commission, which recommended referring the matter to AZRK. The agency’s inspection confirmed that the duty hampers processing development and negatively impacts agricultural producers. AZRK specialists recommend a gradual reduction of the duty and adjustments at the upcoming interdepartmental meeting.

Regarding sunflower oil exports, volumes are increasing, but mainly due to primary processing from the seeds, including cold-pressed oil. Ashimbetov noted that 70% of exports consist of unrefined oil, indicating insufficient development of deeper processing. “Processing should certainly be developed, but farmers must not be disadvantaged,” he emphasized.

According to AZRK data, farmers continue to face difficulties selling sunflower seeds. Warehouses are filled with large quantities of seeds, some stored outdoors, and exports fell by 20% in 2024. Gradual reduction of the duty is expected to restore export activity and support Kazakhstan’s agricultural producers.

Tags: duties, Kazakhstan, export, sunseed