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Russia to ban sunflower seed exports, impose quota on sunoil -Breaking

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© Reuters. FILE PHOTO A tractor sows sunflower seed and fertilizes soil at the “Leninskoye znamya”, collective farm. It is located about 40km (25 miles) south of Rostov. April 25, 2011. REUTERS/Vladimir Konstantinov/File Photo

(Reuters) – Russia is imposing an export quota for sunflower oil and will prohibit exports of sunflower seed from Friday to August. This was announced by its agricultural ministry on Thursday.

Russia’s Agriculture Ministry stated that the demand is increasing for Russian sunflower oil due to sharp global rises in prices.

The ministry announced that seed exports would be prohibited from April 1 through Aug 31. A 1.5 million-tonne export quota will also be placed on sunflower oil, which will become effective from April 15 through Aug 31. It also stated that there will be an export quota of 700,000.tonnes for sunflower meal.

Russia and Ukraine are two of the largest producers of sunflower oil in the world, while India is a major customer.

According to industry sources, India purchased 45,000 tonnes Russian sunflower oil in April at a record-breaking price. This was due to rising edible oil prices after Ukraine’s supply cut.

Russia’s agricultural ministry stated last week that Moscow should establish export quotas to sunflower oil in order “maintain stability” of the country’s supply. Russia’s agriculture ministry has announced that it is taking measures to defend its food markets after sanctions were imposed by the West over Ukraine.

According to the ministry, “This package of measures will prevent the risk of scarcity and sharp increases in prices of raw materials as well as socially significant products in Russia,” it said Thursday.

An Indian dealer who is part of a large trading company said that the restrictions will keep the prices high.

He spoke on condition that he not be identified because he cannot speak to the media. However, he stated that Indian buyers would not be affected by the restrictions as Ukraine has stopped exporting and Russia had not been able to supply enough.

Russian crude sunflower oil was sold at record prices in India, $2,150 per tonne (includes cost insurance and freight) for April shipment. This compares with soyoil’s $1,767 and crude palm oil’s $1720, according to dealers.

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