Russia to lift ban on sugar exports
Until the end of October 2022, at least, the preferential import of imported sugar to the Russian Federation and the EAEU countries will be extended. The ban on the export of Russian granulated sugar to the State Union will be lifted after August 31. In Russia, they resorted to this greatest demand: firstly, there was a wild demand for this product on the market, and secondly, prices for it rose sharply. Beet growers will harvest a lot of sugar beets in Russia. There is no reason that communities are educating, KazakhZerno.kz writes.
The Eurasian Economic Commission has announced that Russia will not extend the ban on sugar exports in the country of the Eurasian Economic Union. Andrey Slepnev, Minister for Trade of the EEC, said that consultations were held at the EEC site. As a result, countries received guarantees regarding the possibility of detecting contracts and deliveries of sugar after September 1, 2022. There are already first agreements. So, for example, Kazakhstan and the Russian Federation agreed on increased planned volumes of supply. Until the end of the year, 168 thousand tons of granulated sugar will be delivered to the Kazakh side. Kazakhstan, by the way, is a buyer of sugar from the Russian Federation. According to the results of last year, almost 280 thousand tons of sugar were supplied to it. Kazakhstan demands demands with it, which resulted in its deficit in the market and an increase in prices for it by two to two and a half times.
In the EAEU countries, there is an indulgence in relation to imported sugar. Russia can enter without limitation 300 thousand tons, and Kazakhstan – 250 thousand tons. Preferential imports were extended until October 31, 2022 at the EEC Council.
It is worth recalling that in March 2022 there was a boom in demand for sugar in Russia. Although the Russians received confirmation that it exists and in sufficient quantities, they still bought it en masse. As a result, prices have gone up. Then there were logical decisions on the introduction of duty-free importation of imported sweet products and the introduction of a ban on its export. They had two goals: they wanted to supply the market with a product and stabilize its prices. The decisions have borne fruit: in the past, prices for it began to fall.
Now a buyer from the Russian Federation initiates a ban on the import of European sugar in the EAEU country without limiting the ban. Meanwhile, the easing has been extended until 2023. Sugar refineries are afraid that because of this, imports may put pressure on prices in the Russian Federation, which is now being observed.
Last year, the area under sugar beet expanded to 1,005 million hectares (+8.5%). In the Russian Federation, 41.2 million tons of agricultural crops were collected (+ 21.6% year on year). Sugar production in the country increased to 5.9 million tons (+1.8%). In 2022, Russian agrarians again increased the sown area under agricultural crops (by 9.5% according to the Ministry of Agriculture of the Russian Federation). They can increase to 6 million tons of sugar, while the domestic market needs only 5.6 million tons. cultivation by spring 2023. Therefore, it is necessary to lift the export ban now. Kazakhstan needs the right product, and it will not be necessary to extend preferential imports.
So far, the ban on the export of sugar from the Russian Federation is in effect. It is exported only for humanitarian aid and only as part of international transit. The Ministry of Agriculture of the Russian Federation allows export, reveals obesity. It is delivered to Belarus without restrictions.