Russia increases exports of sunflower oil to Iran this season 70% to 404,000 tonnes - Gazprombank
MOSCOW. Aug 15 (Interfax) - Russia has supplied 404,000 tonnes of sunflower oil to Iran in the current season (from September 2022 to July 2023), 70% more than in the same period last season, a review by the Center for Price Indices (CPI) of Gazprombank reviewed by Interfax said.
Iran is among the top-five consumers of Russian sunflower oil and is a promising market for the product.
According to United Nations FAO estimates cited by Gazprombank's Price Index Center, the consumption of vegetable oils in Iran will grow to 2.5 million tonnes by 2032, which is 9% more than in 2022. Imports will increase 11% to 1.9 million tonnes.
In January of this year, amid rising prices on the domestic market, Iran reduced VAT on imports of oilseeds and vegetable oils from 9% to 1%, the review said.
The Center's experts also predict that the duty on the export of Russian sunflower oil in September may stay at zero, while for sunflower meal, it will decrease 23% to 5,765 rubles from 7,445 rubles in August. However, the reduction will be possible subject to the introduction of new rules for calculating the duty on meal, the Center said
As reported, the Ministry of Economic Development has proposed to raise the base price for calculating the export duty on sunflower meal by 2,000 rubles to 15,875 rubles per tonne.
"Increasing the base price will reduce the export duty on meal, stimulate exports and raise prices for sunflower in the domestic market," the review says.
The Ministry of Economic Development also proposed extending export duties on sunflower, sunflower oil and meal until August 31, 2024.
The sunflower export duty is 50%, but not less than $320 per tonne. It was introduced on July 1, 2021. At first, it was valid until August 31, 2022, and then it was extended through August 31, 2023. The amount of duty on sunflower oil is 70% of the difference between the base price (82,500 rubles per tonne) and the indicative price (the arithmetic average of monthly market prices). The export duty on sunflower meal is calculated as the difference between the indicative price (arithmetic average of market prices for the month) and the base price (13,875 rubles per tonne), multiplied by the value of the adjustment coefficient (0.7).
Russia introduced the so-called "sunflower damper" (floating duties on oil and meal) on September 1, 2021. As of July 2022, duties are calculated in rubles.