The Ministry of Agriculture of the Russian Federation, which proposed to increase the export duty on rapeseed from March 1 this year, may also come up with an initiative to increase the export duty on soybeans by 2.5 times - from the current 20% to 50%.
The increase in duties should encourage investors to build oil processing facilities in the Far East, the participants of the meeting explain. They remind that in 2022, 2.3 million tons of soybeans were harvested in this region (6 million tons throughout Russia). But in the Far Eastern Federal District there are now capacities for processing up to 1 million tons of soybeans, says Kirill Lozovoy, an analyst at the OleoScope agency. There is also a problem with the profitability of processing and exporting soybean meal and isolate from the Far East to the European part of the country, where the main consumers of these feed components are located - poultry farmers and livestock breeders, it was said at the meeting. A prohibitive duty, similar to the one that has already been introduced for sunflower, will make exports unprofitable (primarily to China) and will enable processors to purchase raw materials at better prices.
The export duty on soybeans was introduced at the end of December 2020 to prevent an increase in the cost of its processed products - oil and meal. Then the rate was 30%, but not less than 165 euros per ton. From July 1, 2021, it was reduced to 20%, but not less than $100 per ton, which gave farmers the opportunity to export some of their products for export. In September 2022, the duty was extended until the end of 2024.
According to an Interfax source, the export duty rate for rapeseed can be 30% of the customs value. Currently, deliveries are subject to a base rate of 6.5%, but not less than 11.4 euros per ton. But they are allowed only through the Zabaikalsk checkpoint. In fact, the amount of the duty will return to the indicator that was in effect from July 1, 2021 to August 31, 2022 and amounted to 30%, but not less than 165 euros per ton.