The Ministry of Finance of the Republic of Kazakhstan suggests introducing export duties on agricultural products to increase the country's budget revenues. The government is considering new measures.

In late July, the Ministry of Finance of the Republic of Kazakhstan proposed to introduce export duties on a range of raw materials. The aim of this measure is to increase the country's budget revenues. The proposal is to impose a duty of $50 per ton on various types of agricultural raw materials, including various cereal crops such as wheat, rye, barley, oats, corn, rice, sorghum, buckwheat, millet, and soybeans.

It is worth noting that currently the only grain agricultural raw material subject to export duty is sunflower seeds. The duty on these seeds was introduced at the beginning of 2023 and amounts to 20% of the value or at least 100 euros per ton.

Sunflower producers and traders have repeatedly criticized the government for introducing this duty to support oilseed producers, and they have also expressed opposition to its amount. Once the €100 rate was set, the price of sunflower seeds was 240,000 tenge per ton. At the current euro exchange rate, 20% is also approximately 55 euros.

Currently, the price of a ton of sunflower seeds is 150,000 tenge, and the euro rate has increased. Thus, 20% of the seeds' value now amounts to around 55 euros.

Kazakh agrarian associations have repeatedly appealed to the government to reconsider the duty rate, but their appeals have gone unanswered.

However, unexpected support came from the Ministry of Finance of the Republic of Kazakhstan, which in its proposal suggests imposing duties on oilseeds as well, such as flax and rapeseed. The proposed export duty rate for all oilseeds is $50 per ton.

The country's farmers have mixed feelings about this proposal. On the one hand, the reduction in the sunflower rate has a positive impact on the industry. On the other hand, the inclusion of flax and rapeseed in the list of dutiable goods raises certain concerns.

Currently, the discussion on the introduction of export duties on agricultural raw materials continues in the government, and industry associations are trying to draw the attention of state authorities to the risks of such a decision. Perhaps the government has slightly changed its attitude towards wheat export bans, realizing that such actions could lead to economic problems (as Vice Prime Minister Serik Zhumangarin has already pointed out). However, when it comes to oilseeds, there is a possibility that the Ministry of Finance's proposal will be accepted, including flax and rapeseed in the list.

Therefore, reducing the duty rate on sunflower seeds may turn out to be a minor advantage amidst an overall negative trend.

The final decision on the introduction of export duties will be made after discussions by the government's interdepartmental commission involving the business community.