Russia preparing export taxes on sunflower seeds, sunoil

MOSCOW: Russia's economy ministry will soon propose the government impose a restrictive export tax on sunflower seeds from July 1 and a formula-based export tax on sunflower oil from September 1, the minister told reporters on Thursday.

Russia has imposed several export taxes for grain, sunseeds among other measures since December in its battle to tame rising food inflation amid the pandemic.

Details about the size of both taxes will be disclosed on Friday, minister Maxim Reshetnikov added.

"The duty on sunflower seeds will be in effect restrictive. Given the fact that ... the capacity of sunflower oil plants is significantly greater than that of the seeds, we are interested in processing it all inside the country," Reshetnikov said.

The export tax for sunflower oil will be based on a formula, similar to one the government has said it would launch for wheat starting from June 2. The formula will be set at 70% of the difference between a base price per tonne and a cut-off price not yet disclosed.

In December, Russian producers of sunflower oil and sugar agreed to reduce prices for retail chains until the end of March. The government said this week that it would extend these agreements for a couple of months.

Reshetnikov said on Thursday that no price-fixing agreements were planned for other parts of the food sector, though the government is keeping a close eye on some products.

"As to chicken meat and eggs, the agriculture ministry regulates (the situation) in a soft negotiation mode and through voluntary commitments with poultry producers. Everyone understands that we can apply such mechanisms in the form of agreements, so all the industry players understand everything and meet them halfway," Reshetnikov said.