Kazakhstan Plans to Gradually Reduce Export Duty on Sunflower Seeds as Recommended by the Competition Protection Agency
The Antimonopoly Committee of Kazakhstan conducted a detailed analysis of the impact of the current export duty on sunflower seeds and found it to be economically unjustified and detrimental to domestic farmers. According to the Agency for Protection and Development of Competition (AZRK), the current duty forces farmers to operate at a loss, despite maintaining export activity among processing companies. The AZRK report emphasizes the need for a gradual reduction of the export duty to support the development of Kazakhstan’s agricultural sector.
This is reported by AgroReview
Issues with Sunflower Sales and Stockpiles
During a meeting of the Agricultural Issues Committee of the Mazhilis, Deputy Nurzhan Ashimbetov reported that the storage facilities of farms are overflowing with sunflower seeds. A significant portion of the harvest is stored outdoors, and the export of products is complicated by the existing duty.
“Farmers from the Pavlodar region report that they are forced to operate at a loss, even though they see the opportunity to export products, for example, to China, while also paying an additional 100 euros in duties,” he emphasized.
Expert Recommendations and Prospects for Farmers
According to the deputy, the issue of the export duty has been brought to the attention of the interdepartmental commission, which has requested the AZRK to conduct an inspection. The results of the analysis confirmed that the current duty hinders the development of the processing industry and negatively affects the financial condition of farmers. Experts from the Agency recommended a gradual reduction of the duty and the introduction of appropriate changes at the next meeting of the interdepartmental commission.
Regarding the export of sunflower oil, there has been an increase, but this mainly concerns the primary processed product — unrefined oil, which accounts for about 70% of the total export volume. This indicates insufficient development of deep processing of sunflowers in the country. The deputy emphasized the need to develop the processing industry without limiting farmers’ opportunities.
According to the AZRK, farmers continue to face difficulties in selling sunflower seeds. Significant volumes of products are stockpiled in warehouses, with some stored outdoors. By the end of 2024, sunflower seed exports have decreased by 20%. It is expected that a gradual reduction of the export duty will restore export activity and provide additional support to agricultural producers in Kazakhstan.