Analysts believe that the abolition of export duties further complicates the soybean and rapeseed market

Ukrainian analysts believe that the abolition of duties on soybean and rapeseed exports creates even greater uncertainty in the market.

This was stated by UkrAgroConsult.

Thus, after the adoption of the law on export duties, the government has still not determined the procedure for confirming that the products were grown directly by the producer. Because of this, the customs office refuses to process shipments without paying a 10% duty, which led to a temporary halt in the export of rapeseed and soybeans.

This also forces farmers to suspend sales of oilseed crops: some agree to pay the duty, continue exports and prepare documents for claims for reimbursement of the paid duty amounts, while others completely refuse to export.

UkrAgroConsult believes that the submission of a bill on the complete abolition of duties may deepen the uncertainty of the market, the development of which is currently effectively constrained by the lack of clear rules. After all, export participants are refraining from concluding new agreements because they do not know whether it is worth paying the duty now or waiting for its abolition in the coming months.

At the same time, analysts claim that the introduced export duties “are already fulfilling their main function — stimulating domestic processing.” If previously the annual processing of rapeseed was estimated at 500 thousand tons, then every month the current export regime adds about 200 thousand tons to the processing of rapeseed in the country instead of its export and generates additional export revenue, UkrAgroConsult stated.

We will remind, earlier, People’s Deputy Yaroslav Zheleznyak submitted to the Verkhovna Rada a bill on the abolition of the export duty on soybeans and rapeseed.