Wedoany.com Report-Sept. 9, Rapeseed exports from Ukraine have come to a complete halt, according to analysts at Spike Brokers. Since August, many traders, anticipating the introduction of export duties, had been purchasing rapeseed directly from producers. However, this strategy did not prevent disruption. On September 4, customs authorities canceled all periodic customs declarations, including those from producers who were expected to be exempt from duty payments.

The absence of a mechanism within customs procedures to verify the origin of home-grown products has resulted in producers being required to pay a 10% export duty until the source of the rapeseed is confirmed. This situation has created reluctance among farmers to proceed with exports, highlighting shortcomings in the current legislation covering rapeseed and soybean trade. Traders, caught in this uncertainty, are facing substantial financial losses, particularly due to ship downtime at ports. Discussions are ongoing between businesses and government institutions to establish a workable framework.

Customs, tax, and relevant ministries reportedly possess instruments to confirm the origin of self-produced goods. However, delays in implementation and insufficient coordination among agencies have effectively stalled the process. In the meantime, domestic processors have used the circumstances to their advantage, gradually lowering purchase prices over the course of the week.

For producers, the absence of export opportunities may persist for at least a month, until legal amendments and operational mechanisms are put in place. During this period, many farmers could face limited options for selling their rapeseed harvest.

Market prices have reflected the current disruptions. Domestic purchase prices for rapeseed intended for processing fell from $600 per ton with VAT at the start of the week to $585 with VAT by its end. Export quotations also weakened, dropping by $15 to $20 to settle in the range of $520 to $530 per ton. At the same time, rapeseed oil prices saw a decline of about $30 compared with the previous week, trading between €1,050 and €1,060 on a free-on-board (FOB) basis from northern ports.

The ongoing challenges illustrate how regulatory uncertainty and lack of interagency alignment can impact both domestic and international markets. While government bodies and industry stakeholders are working to resolve the issues, the immediate consequences include financial strain on traders, reduced income for farmers, and lower overall pricing across the supply chain. If the situation is resolved promptly, exports may resume and stabilize market conditions; however, the near-term outlook remains highly dependent on legislative adjustments and the establishment of a clear verification system for product origin.