Export of sunflower seeds and oil from Kazakhstan ceased
Due to the establishment of quotas on the export of sunflower seeds and sunflower oil in August, which was amended in October, quotas for November have not been distributed yet and, therefore, agricultural producers are forced to delay deliveries.
Currently, a new order is under review. It states about the increase of quotas for export of seed of 125 thousand tons and oil of 110 thousand tons. However, since so far the order has not been agreed upon, exporters have not been able to supply their products for about a month.
Producers face a difficult situation, as they cannot meet the terms of international contracts in the prescribed time, which may lead to their default. Numerous employees are forced to take an unpaid leave of absence. Also, export restrictions have a negative impact on the formation of prices for these products inside the country. The price that is formed now can not even cover the current costs of producers and does not allow them to develop.
Concerning the construction of oil refineries in the country, it is necessary to develop domestic capacity. To achieve this, it is necessary to encourage sunflower producers to sell their raw materials to domestic enterprises. And for this, it would be nice to give subsidies to enterprises for the purchase of agricultural products, as at the moment the price at which they accept sunflower seeds is twice lower than the price offered abroad.