Export duties on sunflower oil make sunflower cultivation unprofitable in Russia

Russia's sunflower production is facing challenges due to the impact of export duties on sunflower oil, which are limiting the profitability of the crop. The introduction of flexible export duties on September 1, 2021, has not resolved the issue. Experts suggest a return to zero export duties to support the dynamics and profitability of sunflower production. However, the high cost of production facilities and loans is reducing the margin below 50%, raising questions about the investment attractiveness of the crop in Russia. The profitability of sunflower cultivation for the 2023/24 season is expected to increase due to a rise in the selling price, but the high cost of production and loans may limit this.

Sunflower production in Russia faces problems due to the impact of export duties, which limit the profitability of this crop. According to expert, acting director of the Oil and Fat Union of Russia Mikhail Maltsev, a return to zero export duties on sunflower oil could support the dynamics and profitability of sunflower production. However, according to the specialist, it is not the zero duties themselves that are more important, but the level of margin of sunflower seed producers that they could support. The slowdown in sunflower production growth compared to other crops, such as rapeseed and soybeans, has become apparent in recent years. Maltsev notes that the introduction of export duties on sunflower oil limits the profitability of this crop, which contributes to a decrease in its production rates. Flexible export duties on sunflower oil were introduced in Russia on September 1, 2021, and although their rate changed, the problem of low profitability remained. Other experts, ...