News
09.09.2010
In 2010, sunflower oil export volumes from Ukraine to cover 60% of the world market
Taking into account the present tendencies on the market of grains, in 2010, the export volumes of sunflower oil from Ukraine will possibly cover 60% of the world market, at the same time, in 2009 the index totaled 54%, declared Eugene Lavrov, the Deputy Minister of Agrarian Policy of Ukraine, on August 26.
He reminded that in order to stimulate the growth of sunflower oil production in Ukraine, in 1999 the Government imposed the export duties for sunflower seed at the level of 23%, with the following reduction to the level of 17% in 2004.
According to E.Lavrov, the imposed export duties became the factor, which reduced sunflower seed exports and assisted to the growth of sunflower oil production on the domestic market, increased workload of the fat-and-oil industry, and increased the share of sunflower oil exports on the world market.
However, according to the Deputy Minister, to date development of the complex, faces the serious threat due to the current requirements of the WTO (World Trade Organization) to cancel the export duties for sunflower seed. In the process of accession to the WTO, Ukraine should gradually reduce own sunflower seed export duty by 1% per year. And according to the accession terms, the index should reduce from the level of 16% to 10%. Nevertheless, in 2010, the current export duty rates totaled 12%, stated the Deputy Minister.
The European Union insists on the cancellation of the reporting export duties for sunflower seed from Ukraine. According to E.Lavrov, such measures will stimulate sunflower oil production in the Third World countries, which will affect the domestic production in Ukraine. Also in such case, the domestic prices for sunflower oil will also essentially grow by nearly 50-70%.
