Turkey’s tariff cut could boost Ukrainian sunflower seed exports

Turkey’s early reduction of the import duty on sunflower seed from 20% to 12% could significantly boost demand for Ukrainian oilseed this autumn. The lower tariff will take effect on October 1 instead of the previously scheduled November 30, making imports more attractive almost two months earlier.

The decision is particularly important for Ukraine, as Turkey is the largest buyer of Ukrainian sunflower seed. The lower tariff improves the competitiveness of Ukrainian supplies on the Turkish market and could stimulate higher shipments in September-November.

Sunstone Brokers co-founder and partner Serhiy Repetskyi estimates that Ukraine could export up to 200 thsd tons of sunflower seed in September-November. According to him, demand in Turkey has already strengthened following the tariff announcement, while prices could rise to around $680/t CIF Marmara.

For Ukraine’s domestic market, stronger Turkish buying would mean increased competition between exporters and processors for the new sunflower seed crop. Additional export demand could therefore support sunflower seed purchase prices in Ukraine at the beginning of the season.

Turkey is bringing forward the tariff cut to build up raw material stocks amid supply risks in the Black Sea region and drought in Europe. Ankara’s decision therefore both improves prospects for Ukrainian exports and provides an additional supportive factor for sunflower seed prices in Ukraine.

Tags: Ukraine, sunflower seed, Turkey, sunseed