Since the introduction of the highest selling price and retail price of sunflower oil, the oil industry has generated less than 15 billion rubles in revenue.Reported revenue RBK KPMG Consulting Company. In view of the difference in prices in the domestic and foreign markets, the sunflower oil producer’s lost revenue from sales on the domestic market is 30-40 000 rubles. From 1 ton to the end of the year, taking into account changes in market conditions, the amount of lost revenue may exceed 50 billion rubles.
The government regulations introduced in December last year achieved the set goal-price stability in sunflower oil stores, and people bought the product at an affordable price. If no agreement is reached, the retail cost of sunflower oil will increase significantly. The price of sugar is also regulated by the state.
The regulation of the domestic market has led to a gap with the world price: worldwide, the price of sunflower oil exceeds $1,000 per ton, while the average annual price so far is about $750. The price increase is related to the limited harvest of oilseeds: due to weather conditions, yields in Bulgaria, Romania, Russia and Ukraine are lower. Now the manufacturer is losing 80-90 rubles. When selling sunflower oil for 110 rubles. Each bottle-according to the current world price, the cost on the shelf should be about 200 rubles.
The producer of sunflower oil himself, KPMG’s estimate is 15 billion rubles. The lost income disagrees. Due to price controls, manufacturers of oil products cannot make money by retailing bottled oil alone; from December 2020 to March 2021, the total lost revenue is about 7.5 billion rubles. Said Mikhail Maltsev, executive director of the Grease Union.
According to him, until the end of the 2020/21 season, he has promised to provide sunflower oil producers with approximately the same amount of subsidies. The state support mechanism being developed by the Ministry will make it possible to compensate processors for most of the loss of profits regarding the effectiveness of price stabilization agreements. With rising prices in the world market, exports have also helped partially make up for the losses of producers.
Sunflower oil producers have previously stated that they are prepared to maintain the wholesale price at the announced level of -95 rubles. Every 1 liter-until the end of August to avoid imposing export duties on its products. Currently, only sunflower and rapeseed exports are levied tariffs (the highest rate is 30%, but not less than 165 euros per 1 ton).
However, the Minister of Economic Development Maxim Resenikov stated on Thursday, March 25 that from September 1 this year, export duties on sunflower oil may be imposed. Reshetnikov explained that the “damping mechanism” used for sunflower oil exports will be based on the principle of grain shock absorbers, the price of which is the lowest price and exceeds 70% of the price difference. In addition, from July 1st, the export tax on sunflower seeds will be basically banned because the country does not have enough seeds. From July 1, the sunflower tariff can be increased to 50%.
Experts say that starting from September, increasing export tariffs on oilseeds and imposing tariffs on refined oil is a measure unanimously agreed by the industry. They believe that the tariffs on sunflower oil will be implemented in the new season, and the stable and understandable rules of all participants will enable the market to survive this season without sharp rises and price fluctuations.
If the export tax is levied in this season before September, it will become a turnover tax for producers due to the high price of product inventory. The tariffs imposed in the new season will take into account the new pricing of raw materials and will not have a negative impact on the processor’s economy.
KPMG believes that in the long run, the collection of export taxes will have a negative impact. No large-scale processing company will formulate a serious export development plan for export tariffs, will not invest in processing in the target market, and will not make a serious investment in quality. In the future, the prices of oilseed and sunflower oil on the domestic market will fall relative to the world market, but this will mainly affect the production of crops.
At the same time, in the face of rising prices of fertilizers, plant protection products, and agricultural machinery, farmers have fallen into the “scissors” of rising costs and limited product prices.
He said: “The external market for Russian oilseed producers is very important-more than 50% of the oil produced in recent years is exported.” Bells Andrey Sizov, Director of the “Sovekon” Analysis Center. -For oil producers themselves, this will not be a problem, all lost income will be transferred to agricultural producers. In the next few years, we will see a rapid decline in domestic crop production, and I usually say that these actions are destroying the entire industry. The outlook is bleak. “
Andrei Sizov pointed out that if a floating tariff is imposed on cereals and agricultural producers can choose to switch to oilseeds, they have no hope now. In the future, prices will be lower than the unrestricted level, and Sizov did not rule out. “However, this price has caused a huge blow to the production of Russian crops.”
The Ministry of Agriculture stated that they do not want investment activities and product output in the sector to decline, because sunflower production is one of the most profitable and profitable areas for agricultural producers.