Russian June duty on sunoil jumps 41% to $525/mt

The export duty on sunflower oil from June 1 will increase by $152.80/mt or 41% to $525/mt, according to local media citing the Russian Ministry of Agriculture.

The commission was determined based on a floating index that values ​​sunflower oil at $1,750/mt.

The export duty on sunflower meal from June 1 will increase by 9% or $8.80/t and will amount to $105/mt.

Both fees are in effect until a new update is published.

On March 27, 2021, the Russian government announced the establishment of a damper mechanism for the export of sunflower oil in a bid to control runaway domestic prices.

As a result of the measure, the export duty was set at 70% and will be charged on the difference between the base price and the indicative price.

The base price is set at $1,000/t, and the indicative price, from April 15, 2022, will be determined based on the data of the National Commodity Exchange, which is part of the Moscow Exchange group.

It is based on the daily calculation of two new price indicators, over-the-counter sunflower export indices, oil and sunflower meal.

This mechanism will operate until August 2022.

Starting April 15, the Russian government introduced export quotas of 1.5 million mt for sunflower oil and 700,000 mt for sunflower meal.

The quota for sunflower oil will be divided among 54 oil extraction enterprises, and the quota for sunflower meal between 21 enterprises, as was officially announced on the website of the Ministry of Agriculture on April 12.

The top five recipients of the largest volumes included the EFKO group of companies (239,700 mt), Aston (178,700 mt), the Rusagro group (137,400 mt), Cargill (135,600 mt) and the South of Russia group (133,100 mt).