Abstract
In recent years, the Russian market of sunflower oil has shown steady growth, while the key trend is the increase and deepening of exports. In 2020, the market showed an increase in exports to China and India, reaching a value of 35% of the total export volume. At the moment, Russia is considering a formula for an export duty on sunflower oil, as it struggles with food price inflation. It is assumed that the export duty on sunflower oil will be structured similarly to that used in the wheat market. The government brokered the deal to mitigate the impact of high international prices on a key domestic product, and was forced to lock in retail sunflower oil prices after domestic sunflower and sunflower oil prices began to rise following last summer’s low sunflower harvest in the Black Sea region. It is expected that the introduction of a new export duty will be able to stabilize domestic food inflation.
Highlights
The global economic situation is gradually deteriorating, and global financial institutions say that the recovery will be long and uneven
Russia is considering a formula for an export duty on sunflower oil, as it struggles with food price inflation
It is assumed that the export duty on sunflower oil will be structured to that used in the wheat market
Summary
The global economic situation is gradually deteriorating, and global financial institutions say that the recovery will be long and uneven. With increasing inflationary trends in world markets, States seek to protect domestic markets and jobs by closing the production circuits of their most important products within controlled economic territories - preferably their own These transformational aspects of modern globalization have primarily affected one of the most sensitive areas of the international economy - food production. It seems that the current global inflation issue in world economy creates a requirement in further prioritising the internal comsumption, rather that mere partial import subsititution This hypothesis made up the primary goal of the current article, which can be formulated as evaluating the possible consequences of further state intervention to restructuring the sunflower oil domestic market and industry. This particular market segment is an exceptionally good example due to its obvious export orientation and strong positions in the global agriculture industry
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