Sunflower seeds won't go abroad even if the export duty is eliminated. This statement was made yesterday in the Majilis by a member of the Amanat party. He explained that regional processors are purchasing raw materials from Russia, and the prices they offer local farmers for sunflower seeds are too low. Members of parliament are demanding the removal or reduction of the export duty by at least 50%, according to the APK News agency.
"When we meet with farmers, we are asked questions about the sunflower export duty. We want to sell and make money," farmers say. The price per ton of sunflower seeds was 200,000 tenge. Processing plants are buying seeds for 130,000-140,000 tenge. Why are these difficulties occurring? Because the state has signed a memorandum with our factories to replenish the domestic market and ensure sustainable, stable prices," said member of parliament Nurzhan Ashimbetov at a Majilis meeting yesterday.
He also reported that Kazakhstan's domestic market has ample finished products, but imported prices are much lower.
"I look at this every day and wonder why? You wanted to lower the price of oil and oilseeds. I wonder how you're making any revenue? Factories are being built in the country; for example, three are under construction in Pavlodar. I asked processors, and they said Russia is closer, so we import from Russia. And when we looked into this issue before, the Ministry of Trade and Integration said that even though there is a state duty, our exports are increasing. No, they're not actually increasing," the deputy said.
Previously, deputies recommended eliminating the state duty or reducing it by 50-70%.
"I'm a member of the interdepartmental commission, and the Ministry of Trade is the one who primarily delivers the report. They say that if we remove the state duty, all our sunflower seeds will go abroad." "No, that won't happen, because this year our farmers have increased their sowing area by 500,000 hectares. The Ministry of Agriculture is already reporting a high harvest. And in Russia, it's even higher. We ask for your support and to reduce the state duty by at least 50%, so that it reaches at least 50 euros. Then prices won't rise, and we'll be able to build processing plants," the deputy concluded.