The FINANCIAL — According to market participants, the government of Ukraine plans to cancel the export duties for sunflower seeds, which totals 12% from the customs value, to date. As a reminder, the cancellation of the export duty is one the requirements of the further Agreement about the free trade zone between the European Union and Ukraine.
According to the estimations of APK-Inform Agency, in 2009/10 MY, Ukraine harvested nearly 7.6 mln tonnes of sunflower. At the same time, during 10 months of the current season, the country exported 350 thsd tonnes of the oilseed as opposed to 769.27 thsd tonnes in 2009/09 MY, at the same time, the domestic processing volumes totaled 7.13 mln tonnes.
Market participants also have alternate opinions concerning consequences of the possible cancellation of the export duties for the economic system of Ukraine. From the one hand, such cancellation will assist in strengthening of sunflower seed purchasing prices and increasing of farmer incomes, besides, such changes will activate export trading of Ukrainian agricultural products. However, several oilseed processors will possibly face difficulties with purchasing of the raw material and reduction of the profitability of the raw material processing.