Russian union urges to lift rapeseed export duties

 

 

Russian Grain Union (RGU) offers to the government to annul the export duties for rapeseed, according to reports.

 

The current export customs duty of 15% (but not less than EUR30 per one tonne) was introduced by the Resolution of the Government of the Russian Federation #84 dated February 8, 2007, and actually became the prohibitive duty for rapeseed exports from Russia.

 

The previous export duty was introduced by the Resolution of the Government of the Russian Federation #186 dated March 15, 2001, and totalled 20% (but non less than EUR35 per one tonne)

 

The RGU announced that the efficiency of the export duty for rapeseed was used up. The government is able to reach the maximum effect from the production and processing of the oilseed in Russia, and allow Russian rapeseed come on the world market without any restrictions, according to the announcement.

 

In 2009, rapeseed and rapeseed oil exports from Russia totalled 1% and 4% from the world export volumes of the products. To date, rapeseed is the "insurance" oilseed crop.

 

Rapeseed production in the country totals 1.2% from the world production of the oilseed. Last year, rapeseed took the traditional third place in the sphere of harvest volumes among the general oilseed production in Russia.

 

At the same time, Russia has 5 million hectares of sowing areas, suitable through the all indices and recommended for rapeseed growing. The real potential of Russia with the minimum yield terms of 14 c/ha totals 7 million tonnes of rapeseed per year.

 

The RGU stated that the present export duties till recent time have been helping to develop domestic rapeseed processing. During last 10 years, the volumes of rapeseed processing in the Russian Federation increased by over 5 times, at the same time, the oilseed exports increased by 2 times.

 

Taking into account the fact that to date, the volumes of rapeseed processing in the Russian Federation almost stopped increasing and total 9.5-10 million per year, the country has the market limit of domestic demand in rapeseed at the level of 0.95-1.5 million tonnes per year.

 

According to RGU, it is not allowed to associate the perspectives of rapeseed development to the development of the oil-and-fat industry and the consumption of rapeseed in the feed base of livestock, thereby lowering the position of rapeseed in the structure of world oilseed consumption. The world splash of interest in rapeseed is associated first of all, with the perspective of rapeseed consumption in the bio-diesel production, and it is not allowed to "close" the rapeseed within the frames of traditional consumption in Russia.

 

According to reports, RGU sent the proposal about annulling the export duty for rapeseed to the Ministry of Agriculture of the Russian Federation.