Many reasons for the limited price of oil

Ivan Strahinic

The Government of Serbia, by amending the decree, has again decided that the limited price of 219.99 dinars for sunflower oil in retail sales will remain in force.

There is a reason for this, because sunflower oil is one of the products that is most in short supply, especially in Europe, due to disruptions in the market. It was announced recently that domestic agricultural producers will be able to count on additional state incentives for sowing sunflowers, and they could be paid by the end of the year. According to some information, more than 30,000 requests for this measure have been received so far.

As the influential German agricultural portal “Agrarhoit” announced, the European Union is definitely dependent on the import of sunflower oil, which cannot be replaced by other similar products on the market.

This was clearly seen in the first quarter of this year when, due to the war in Ukraine, deliveries from that country were stopped or drastically reduced, and when the drive to bring the largest possible quantities to the European market began. Somewhere in that period, the export of olive oil from Serbia increased by more than one hundred percent in just a few days, so a temporary export ban was introduced. By the way, the EU imported as much as 86 percent of this product from Ukraine.

Germany is also on the list of countries that procure significant amounts of olive oil. However, photos of empty supermarket shelves published in the media took their toll. Last spring, farmers spontaneously began to opt for this crop in order to take advantage of the opportunity for better earnings. At one point there were not even enough seeds.

That Serbia is a large producer is also indicated by the fact that this spring, farmers in Serbia planted sunflower on 250,000 hectares at the expense of other crops, while in 2021 the area under this oilseed was from 210,000 to 215,000 hectares. In the last few years, the best harvest was in 2019.


Source: Vesti online by www.vesti-online.com.

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