Russian Flax: 10% Export Duty to Boost Processing

The introduction of a 10% export duty on oil flax is expected to significantly increase its competitiveness in the Russian domestic market and stimulate the development of processing. This opinion was expressed by Mikhail Maltsev, Executive Director of the Russian Fat and Oil Union.

According to Maltsev, oil flax and rapeseed directly compete both for sown areas and for processing capacities. However, export conditions for them are still unequal: rapeseed is already subject to a 30% duty, but not less than 165 euros per ton.

The expert noted that flax processing is more complicated since its oil oxidizes faster. He also added that protective measures for flax should be comparable to those in effect for rapeseed.

Despite the fact that current flax production volumes are twice as high as processing capacities, it is expected that the 10% duty will help increase its competitiveness and support the growth of the processing industry. In the future, as processing capacities expand, the duty rate may be raised.
Thus, this measure is aimed at protecting the domestic market and creating incentives for investment in the processing industry, which could lead to an increase in added value and reduce dependence on raw material exports.