UPDATE - Customs Duties on Oil Sunflower Seeds Revised

Foreks - The customs duties have been rearranged to meet the seed needs of sunflower oil producers and to ensure supply security and price stability in sunflower oil.

In a statement made by the Ministry of Trade, it was noted, "As is known, to direct the markets correctly to prevent speculative pricing, ensure supply security for basic food items, and meet the country's needs through the promotion of domestic production, the welfare of producers and consumers is evaluated together. The Ministry of Trade is utilizing all the tools of trade policies timely and effectively in coordination with relevant institutions and organizations, primarily the Ministry of Agriculture and Forestry."

The statement included the following information: "In this context, due to adverse climate conditions leading to a decline in yield and harvest in our country, as well as the effects of regional and global developments, measures are being taken to establish supply-demand balance in oilseed sunflower seeds and sunflower oil, which have been adversely affected worldwide, and to increase the production of oilseed sunflower seeds while ensuring that our farmers are encouraged and monitored. The Ministry of Trade, in consultation with the Ministry of Agriculture and Forestry, is closely following this matter and taking necessary precautions.

Within this framework, in accordance with the Decision No. 8788 dated 05/08/2024, considering the harvest period of oilseed sunflower seeds and the need to protect farmer income, with the exception of cases deemed necessary based on domestic and foreign market conditions, during the period from July 1 to November 30, 2024, a customs duty exemption of 8% or 400,000 tons for 1 million tons of oilseed sunflower seed import, valid until May 2025, has been opened for companies that produce crude and refined sunflower oil, prioritizing those who purchase domestic sunflower seeds.

It has been observed with satisfaction that farmers have been able to sell domestic oilseed sunflower seeds at a good price during this year's harvest period, and their planting motivation for the 2025-2026 season has been positively impacted, as firms purchasing from our farmers will have priority in benefiting from such imports. Moreover, this import is only allowed during January-April when local seeds will be depleted in the country.

On the other hand, the decrease in sunflower seed yield globally, the upward trend in world prices, and the changing structure of the industry due to industrialization have led to difficulties for our vegetable oil producers and oilseed crushing industry firms in sourcing sunflower seeds, as foreign suppliers tend to favor selling crude oil over seeds.

Therefore, there is an urgent need to ensure that manufacturers and crushers can procure their necessary raw materials at reasonable prices from both domestic and foreign supplier countries throughout the harvest period, thereby ensuring supply security and price stability in sunflower oil. The customs duties applied to this product have been rearranged to protect our farmers, industry, and final consumers.

In this regard, the customs duty previously applied at 27% for oilseed sunflower seeds under the Import Regime has been revised to 12%, while the customs duty, which is applied at 8% under the tariff quota opened by Decision No. 8788, has been revised to 0%."