Quotas for oil and fat products will lead to a surplus in the domestic market

The National Association of Oilseeds Processors of Kazakhstan proposes the Ministry of Agriculture to reconsider the volume of quotas allocated to sunflower oil and sunflower meal, World of NAN reports.

To recap, according to the order of the Ministry of Agriculture of Kazakhstan, the volume of export quotas on sunflower seeds and sunflower oil is 15,000 and 32,000 tons. According to the association, these proposals are no longer relevant in connection with the introduction of quotas on sunflower seeds.

"It is necessary to take into account the launch of new oil plants this year. The annual processing capacity of the four plants is about 1 million tons. With oil quota of 32 thousand tons the oil plants will stop already in November this year because of the limited domestic demand for these products. Subsequently, we will get overflowing warehouses with oil, meal and cake," noted the Association of Processors.

Thus, according to their data, the surplus on the domestic market during the period from September 2021 to January 2022 will amount to 103-115 thousand tons of sunflower oil, 150-164 thousand tons of sunflower meal cake. This will immediately lead to an increase in the cost of finished products and stop the purchase of oilseeds on the domestic market. All participants of the market will suffer - from farmers to end users of the products.

"Based on the existing storage capacity of the finished products of oil mills, as well as the potential sales of oil and meal in the market of Central Asia and China. The Association proposed to the Ministry of Agriculture to change quantitative restrictions in the direction of exports for sunflower oil in the amount of 71-82 thousand tons, for sunflower meal 101-115 thousand tons," added oilseed processors.

The association provided the Ministry of Agriculture data on the consumption of finished products in the domestic market, as well as the estimated balance of production, taking into account the restrictions on the export of sunflower seeds from the country. They hope that their proposal will be heard by the agriculture ministry, which will reconsider the volume of quotas.

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