Deputies propose to exempt food oilseeds from export duty

A draft Law “On amendments to the Law of Ukraine “On rates of export duties on certain types of oilseeds” was submitted to the Verkhovna Rada (regarding the definition of its purpose and sphere of action) on October 16. writes about it with reference to the site of the Verkhovna Rada of Ukraine.

A bill was developed by people’s deputies Vadaturskyi Andrii, Khlan Serhii, Kulinich Oleh, Lunchenko Valerii and Karpuntsov Valerii. The purpose of the bill is to stimulate production of value added products – food sunflower and flax seeds in retail (up to 25 kg) packages.

As the drafters of the bill explained, the Law of Ukraine “About export duty rates on certain types of oilseeds” is currently in force, stimulating the processing of seeds into oil, while also making non-competitive production of food seeds for export markets. Moreover, the current law imposes export duties not only on seeds, but also on packaging.

Also, the drafters of the bill note that current legislation does not take into account the existence of two types of seeds according to their intended purpose, based on the indicators of oil content and the ratio of the seed kernel to the shell (oil and food) and the existence of two types of seed processing. In practice, about 80% of sunflower and flax seeds is processed into oil, and 20% – into the final food product. And the latter completely unreasonable is a subject for export duties designed to protect the oil and fat industry.


©Propozitsiya – The main magazine on agribusiness

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