The Turkish government is expected to increase import duties on sunflowerseeds and sunflower oil from the current zero rate to 27% and 36% respectively from 1 June, according to trade sources quoted by AgriCensus.
The current zero rate was due to expire on 31 May, the 12 May report said.
“This is the market expectation but it’s not officially announced yet,” a Turkey-based source told AgriCensus.
Although no official statement had been announced about the rate of import duty from 1 June, Turkish sources said the industry had anticipated the move, with any increase in duties expected to slow down imports, the report said.
“The duties, which are scheduled to be introduced on 1 June, should have already been taken into account by the market. With the tariffs coming into effect soon and a new harvest season starting in Turkey, it is reasonable to expect a noticeable slowdown in import demand from Turkey,” Yılmaz Cakabey Aytug from Naragro told AgriCensus.
However, the increased rate would have a significant impact on the Ukrainian sunflower oil market, as Turkey was one of the key buyers of Ukrainian shipments, as well as an important link in redirecting Ukrainian sunflower oil in the Black Sea grain corridor, the report said.
“Imports will stop. Only re-exporters and transit sellers will continue buying, with a 50% pace of the first five months,” Onat Angi, chairman of Solventum, told AgriCensus.
In addition, expectations of a good sunflower harvest in Turkey this season would mean it would only buy from Ukraine if the price was competitive, Anilkumar Bagani, head of research at Mumbai-based vegetable oil broker Sunvin Group, told AgriCensus.
Meanwhile, the presence of Russian sunflower oil on the market and the willingness of Russian sellers to significantly lower prices would put pressure on prices for Ukrainian sunflower oil, the report said.
According to US Department of Agriculture (USDA) expectations, Turkey’s sunflower crop this season could reach 1.9M tonnes, up 8.6% more compared to last year and one of the largest crops in at least 10 seasons.
Ukrainian deliveries to Turkey from September to April of the 2022/23 season increased to 757,943 tonnes from 56,845 tonnes for the same period the previous season.
The Turkish government had removed all import duties on sunflowerseeds and sunflower oil in early January despite a record 2022/23 sunflower crop, while maintaining zero import taxes for grains in a bid to bring down inflation, local sources said.
