Oil and Fat Union of Russia Opposed the Abolition of Export Duties on Sunflower Oil and Meal

Mikhail Maltsev, executive director of the Fat and Oil Union of Russia, said that his industry association does not support the idea of ​​abolishing export duties on sunflower oil and meal, which was previously proposed in the Russian Grain Union (RGU). It is reported by RIA Novosti.

“Oilseeds export duties are a consistent policy of the Russian Ministry of Agriculture to protect the domestic processing market and to increase the utilization of domestic capacities. The oil and fat industry has been seeking them for many years and will always support the authorities in deciding whether to preserve and extend them, ” Maltsev said.

The expert also stressed that the main function of the export duty on oil and meal is to contain domestic prices while the world prices are growing, while simultaneously supporting the profitability of agricultural producers.

The head of the MZHSD also drew attention to the pace of sales of raw materials by farmers and urged them “not to hold back sales in anticipation of a speculative price hike”. According to Maltsev, Russian crushers will be able to process the entire record harvest and significant stocks from last season.

“We hope that the farmers have learned from the mistakes of the last season and will not hold back sales in anticipation of a speculative price hike,” the head of the union comments. – At the same time, we believe that a further prompt reduction in the preferential lending rate for the purchase of oilseeds is necessary in proportion to the reduction in the discount rate of the Central Bank. This will help speed up the purchase of raw materials by processors, which will primarily support farmers.”