State intends to earn $20 million from farmers

Kazakhstan may earn $20 million on the export duty on sunflower seeds, the forecast was voiced by the Ministry of Trade and Integration, World of NAN reports citing LS.

In response to a query of LS editorial office, the Ministry said that at the moment the mechanism of distribution of tariff quotas is being discussed with the professional participants. In addition, options for its calculation and volume, within which the export of sunflower seeds will be duty free, are being considered. Presumably, the size of this figure will be 200-300 thousand tons.

The Ministry explained that the export customs duty ("ECD") will be applied outside the quota. It is noted that with the introduction of this mechanism, the export of raw materials will not be restricted, but it will be necessary to pay duty.

"If the forecast for the export of sunflower seeds in 2023 is 200 thousand tons (without taking into account the tariff quota) worth $100 million (the average price of $500 per ton), the estimated budget revenue will be $20 million if the duty is applied at 20%," - said at the Ministry of Trade and Integration.

The Ministry adds that this measure is introduced in order to use the full capacity of oil refineries and to stabilize prices of products. Also, this mechanism will increase the production and exports of products with added value. According to the agency, Kazakhstan has 47 enterprises which process sunflower with a total capacity of 2.8 million tons. The gross yield of seeds is 1.2 million tons.

"Domestic processors can process twice the harvested crop, as evidenced by a nine-fold increase in imports, from 18.2 thousand tons to 190.8 thousand tons," stated at the Ministry.

According to their data, the area of sunflower sowing in 2022 increased by 32% compared to 2020 (757.7 thousand hectares) and amounted to 1 million hectares. As explained, this is due to the high profitability of the production of this crop. In this case, the domestic plants demand for the raw material exceeds the supply twice.

At the same time it is noted that the poultry farming, animal breeding, feed mills, varnish-and-paint factories, confectionary production and others also depend on the oil-and-fat industry.

"The availability of sunflower seeds on the domestic market will directly affect the food security of the country, as well as the number of workers, reducing import dependence and food inflation in related industries," was explained in the ministry.

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