Tashkent, Uzbekistan (UzDaily.com) -- The Law "On additional measures to provide certain types of food products" was approved.

The purpose of the Law "On Additional Measures to Provide Certain Types of Food Products", considered at the fourteenth plenary session of the Senate, is to guarantee the needs of the population of the republic with basic types of food products and to prevent unreasonable price increases during the current global coronavirus pandemic.

It was noted at the meeting that negative estimates for sunflower seeds and oil that are emerging in foreign markets also have an impact on pricing and social status in the domestic market of our country.

This is also evident from the fact that about half of the average annual demand for vegetable oil in the consumer market of our country in the amount of 460 thousand tons is covered by imports.

The data of the UN Food and Agriculture Organization also notes that in March 2021, the average prices for vegetable oil in the world increased by 86% compared to the corresponding period of last year, and by 21% compared to the beginning of this year.

About 70% of sunflower oil is imported to our country from the Russian Federation. If the cost of a ton of sunflower oil in Russia in December 2020 averaged US$900, then in March 2021 it rose to US$1,250, or 39%.

At the same time, Russia plans to introduce from September 1 this year a customs duty on the export of sunflower oil for a period of one year.

As a result of these changes, last year the price of sunflower oil in our country rose by an average of 38%.

In order to prevent a sharp rise in prices for vegetable oil in the domestic market of our country, this Law amends the Tax Code, according to which the following are exempt from value added tax from 1 May to 31 December 2021:

import into the territory of the Republic of Uzbekistan of vegetable oil, sunflower and flax seeds, as well as soybeans;

turnover for the production and (or) sale of vegetable oil.

In addition, this Law introduces export customs duties on sunflower seeds and raw cotton, sunflower oil and cotton-oil products from 1 May to 31 December 2021.

It is expected that with the approval of this Law, strict monitoring of oilseed crops will be established.

This Law has been approved by the Senators.