Russia introduces export ban on sunflower and rapeseed

A complete ban on sunflower and rapeseed exports will be introduced in Russia from 1 April and will last until 31 August 2022. This is stated on the Telegram channel of the Ministry of Agriculture. The decision to introduce these measures was supported by the Oil and Fats Union, which noted that the new restrictions would stabilise the situation in the market.

“The introduction of an export ban on sunflower and rapeseed, which will last until the start of the new season, will stabilise the market. According to our forecasts, sunflower prices should fall from the current cost of more than 50,000 roubles per tonne to below 40,000 roubles in the coming weeks and remain within these limits until the new harvest,” predicts Mikhail Maltsev, Executive Director of Oil and Fat Union.

The statement from the Ministry of Agriculture also said that a quota for the export of sunflower oil and meal of 1.5 million tonnes and 700,000 tonnes, respectively, will come into effect in the Russian Federation from 15 April to 31 August.

“Now, the quota for sunflower oil is at least 0.5 million tonnes below what processors could export if the country’s needs were fully met. This creates an oversupply in the domestic market, which has a positive impact on the cost of raw materials – the purchase prices of oilseeds go down. At the same time, the current tariff on sunflower oil exports remains, as does the situation with overstocks of raw materials and finished products. Thus, domestic prices for sunflower oil are reliably protected and processors can offer consumers an affordable price,” comments Mikhail Maltsev.

In addition, against the background of increased demand for domestic oil and fat products, the decision to limit the number of inspection bodies through which goods can be exported was supported.

“For soybean meal, it is proposed to maintain only the sea checkpoint in the Kaliningrad region and checkpoints in the Far East Federal District for soybeans. This package of measures will eliminate the possibility of shortages and a sharp increase in the cost of raw materials and socially significant products in Russia,” the ministry said.

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