Russia, one of the world’s top producers and exporters of sunflower oil, on Friday suspended floating duty rates on sunflower oil and sunflower meal until August 31 in a move designed to help local producers.

The duty was introduced in 2021 in order to protect the domestic market from price spikes and was set at 4,739 roubles ($59.61) per ton of sunflower oil in July.

“At present, the domestic market is fully supplied with sunflower oil. Therefore, the suspension will not affect the availability of sunflower oil for Russians,” the government said in a statement.

According to the U.S. Department of Agriculture, Russia and Ukraine produce over half of the world’s sunflower seeds and are responsible for nearly three-quarters of total sunflower oil and meal exports.

Russian lobby group Oil and Fat Union estimates that Russia is the world’s leading producer of sunflower oil and the second largest exporter after Ukraine.

“The decision will allow for an increase in export volumes and support sunflower producers and processors,” Russia’s agricultural export agency Agroexport said in a statement.

IKAR consultancy head Dmitry Rylko estimated that Russia exported 4.7 million tons of sunflower oil in the 2024/25 season, which will end on August 31, compared with a record 5.3 million tons in the previous season.

“We expect some revival in exports,” Rylko told Reuters. He estimated that Russia will export 350,000 tons in August.
Source: Reuters