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Starting from September 1st this year, the Russian government implemented a 30% export tariff on rapeseed, effectively balancing the prices of rapeseed in Siberia and making Russian rapeseed oil and meal more competitive in exports to China.
The Oil and Fat Federation predicts that the rapeseed production in Siberia is expected to reach 5 million tons this year, an increase from 4.2 million tons in 2023. After the cancellation of the export tariff policy pegged to the ruble exchange rate implemented by the Russian government since 2023 on January 1, 2025, the competitiveness of Russian rapeseed oil and meal exports will be further enhanced.
According to the Oil and Fat Federation, the purpose of implementing a high export tariff of 30% is to avoid excessive export of raw materials and effectively regulate export volume to protect the market from being affected after the lifting of the ban on rapeseed exports. The tariff income will be used to subsidize agricultural growers to promote agricultural development.
It is worth noting that Igor Kobzev, the Governor of Irkutsk Oblast, proposed setting the lowest possible tariff rate for rapeseed exports from the region to China and plans to implement a preferential quota of 100000 tons in 2024/2025.
According to data from the Russian Statistical Office, the planting area of rapeseed in Russia has increased by 29.3% this year, reaching 2.726 million hectares, demonstrating a good development trend in the industry.