Economy Ministry suggests sunflower export ban

Ukraine's Economy Ministry has proposed a ban on exports of sunflowerseeds from 15 May through 30 September 2021, a draft decision reads.

The draft decision "On Amendments to Annex 1 to Cabinet of Ministers Resolution No. 1329 of 28 December 2020" provides for a quota for the export of sunflowerseeds in the volume of 0 tons.

The explanatory note indicates that due to high competition for raw materials both on the domestic and global markets, sunflowerseed prices have increased by more than 2.1x since the beginning of the marketing year. With the high price of sunflowerseeds on the external market, export volumes for the period September-March 2020/21 boosted by 6.8x against the corresponding period of 2019/21 to 183 thou. t.

"The rise in sunflower oil prices was a consequence of a significant increase in the price of sunflowerseed, which makes up 85% of the cost of oil production. According to the State Statistics data, the average price of unrefined sunflower oil increased by 46% by September 2020 and in February this year amounted to 32 932 UAH/t, a 78% growth YoY. The export price for sunflower oil since September 2020 has increased by 91% or more than 2x in comparison with April of the previous year. As of 1 April, 2021, it ranged between USD 1520 and USD 1580 per ton," the explanatory note reads.

Sunflowerseed export from Ukraine in January-March 2021 surged by 3.8x YoY.

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