The reason for the discouragement of the private sector from buying domestically grown oilseeds

Buyers of domestically grown oilseeds can import 48 kg of foreign seeds, such as soybeans and rapeseed, 12 kg of crude oil, including soybeans, rapeseed, and sunflower, from the sources of Eurasian member countries for each kilogram of domestic seed, 7 kg of oil from non-Eurasian member countries, 20 kg of flour including soybean, sunflower, cotton and rapeseed flour and finally 7 kg of crude palm oil. Subsequently, even the past import clearance was actually added to this resolution, and it was also decided that the payment to the farmer should be made 30 days after delivery.

This decision limited the government’s role to supervision and did not include the government in the field of buying and selling seeds and also from the point of view that it reduces the financial burden of the government in the current situation of budget deficit and at the same time it guarantees the purchase of domestic grain and the payment of farmers’ claims.

The vegetable oil industry of the new government is directing market mechanisms towards a free economy, avoiding mandatory pricing, equalizing the exchange rate and reducing the role of the government. The experience of the past few decades and extensive studies show that if we get rid of the command economy, we will see a reduction in consumption, elimination of smuggling and rent and balance in the consumption market.