News
03.02.2016
Cancelling export duty on flax will double production
Ukrainian Agribusiness Club supports cancelling export duty on flax seeds. In case it is cancelled in 2016, the industrial areas under this crop can be doubled in two or three years. And the increased exports of flax seeds can bring additional USD 45-50 mln, and potentially more.
"Currently, the export duty amounts to 10% and does more harm than good - Igor Ostapchuk, head of the expert group of Ukrainian Agribusiness Club mentions. - In view of the relatively low production of flax in Ukraine (25-60 ths. tons per year during the last 5 years), its processing is not developed".
Export duty prejudices the position of Ukrainian exporters on foreign markets. In particular, annual exports of flax seeds from Russia and Kazakhstan amount to 300-374 and 142-252 ths. tons, and the EU imports 455-617 ths. tons of seeds annualy. Removing the 10% duty will give Ukrainian exporters a price advantage over their foreign competitors in the amount of 5-10% and increase the competitiveness of domestic production.
