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The Association of Agricultural Producers of Kazakhstan’s Kostanay Region is calling on the Ministry of Agriculture to overhaul the state’s approach to the oilseed market. In a move aimed at protecting local growers, the farmers have proposed that all government support—including subsidies, low-interest loans, and transport incentives—be reserved strictly for processing plants that utilize 100% domestic raw materials. Furthermore, the association is advocating for the immediate suspension of the current export duty on sunflower seeds to allow farmers better access to international buyers.
Currently, Kazakhstan imposes a 20% export tax on sunflower seeds, with a minimum charge of €100 per ton. Farmers argue that this levy stifles competition and prevents them from securing fair market prices. They contend that the domestic harvest is more than sufficient to supply local crushers, making the current trade barriers unnecessary and harmful to the farming community.
The situation is further complicated by expectations of a record-breaking sunflower crop in Russia. Growers fear that an influx of Russian sunflower oil into Kazakhstan and broader Central Asia will saturate the regional market and drive prices down even further. According to the association, the current regulatory environment forces farmers to accept prices dictated by domestic processors rather than those established by global supply and demand.
While the association acknowledged recent temporary curbs on raw material imports, they described these measures as inadequate. They highlighted that processors already enjoy significant state benefits, such as subsidized railway tariffs and direct funding for oilseed and feed production, while growers remain restricted in their export opportunities. To level the playing field, the group suggests that export duties should only be applied when local processors can prove a genuine shortage of raw materials. These proposals are now under review by the Ministry of Agriculture at the national level.
Source: UkrAgroConsult