Russia Contemplates Export Duty on Oilseed Flax

Russia is on the verge of implementing a 10% export duty on oilseed flax, according to anonymous sources. This move is backed by a Russian government commission and awaits a final decision. The plan aims to enhance domestic processing capacities amidst increasing production forecasts.

In the 2024/25 season, Russia produced 1.35 million tons of oilseed flax, but only 50,000 tons were processed domestically. With new duties potentially in place, the processing could hit at least 600,000 tons in the 2025/26 season, significantly reducing raw exports.

As the world's largest oilseed flax producer, Russia's decision could reshape international flax markets. The anticipated production forecast exceeds 1.5 million tons, reinforcing the strategic shift towards more domestic processing and export control measures to benefit the local economy.

(With inputs from agencies.)