Rapeseed exports from Ukraine have completely stopped

Rapeseed exports from Ukraine have completely stopped. A significant part of traders, expecting the introduction of export duties, have been buying rapeseed exclusively from producers since August. However, this did not save them: on September 4, customs canceled all periodic customs declarations, including from producers who were supposed to be exempt from paying duties.

This was reported by analysts at Spike Brokers.

The lack of a mechanism for customs to confirm the fact of export of home-grown products has led to the fact that producers are forced to pay a 10% duty until the fact of origin is established. Due to farmers’ reluctance to pay duties and the imperfection of the law on the export of rapeseed and soybeans, traders have found themselves hostage to the situation, incurring significant losses from ship downtime in ports, while business and the government are trying to agree on a working mechanism.

The customs, tax and line ministries have tools to confirm self-grown products, but their fragmentation over time and lack of coordination between agencies have effectively blocked the process. Domestic processors took advantage of this situation and began gradually reducing purchase prices during the week.

For producers, the lack of alternative sales of rapeseed may become a reality for at least a month – until the legislation and mechanisms are finalized.

Over the week, domestic purchase prices for processing fell from $600 with VAT at the beginning of the week to $585 with VAT at the end of it.

Export quotes also fell by $15-20 to $520-530. Rapeseed oil prices lost about $30 over the previous week and were trading at €1,050-1,060 FOB northern ports.

Tags: Ukraine, export, prices, rapeseed, duties