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RUSSIA
The head of the Ministry of Agriculture Alexander Tkachev said that Russia may limit the import of sugar from Belarus and Kazakhstan, where there are no duties on raw sugar, which allows them to supply their product to the Russian market at dumping prices. Minister Tkachev estimates the Losses of the Russian Federation from re-export of sugar by Belarus and Kazakhstan in RUR 70-80 billion.
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«The transfer to the domestic seeds can quickly solve the problem of import substitution and overproduction of sugar in Russia»
According to Sugar.ru price monitoring data for the period from 07.09.2017 to 14.09.2017 the US dollar rate increased by 0.6% (on 07.09 - RUR 57.34/$, on 14.09 - RUR 57.67/$). Ruble Moscow wholesale price for sugar increased by 0.50 RUR/kg (+1.79%), Krasnodar wholesale price dropped by 0.50 RUR/kg (-1.92%). US dollar Moscow wholesale price for sugar increased by $0,006 /kg (+1.23%), Krasnodar wholesale price dropped by $0.011 /kg (-2.42%).
Over the past week, sugar wholesale prices practically did not change, remaining in the corridor 25-26.5 RUR/kg. Now, limited quantities of sugar at a low price sells not only by Prodimex, but also by a number of other companies. In addition to fixing a low price for beets, this strategy is designed to earn only for current needs, leaving the bulk of the sugar in the warehouse, in anticipation of higher prices. However, the only thing that can raise the price is the export of sugar or some other goods containing sugar or products of its processing. If it was possible to export about 700 thousand tons of sugar, even below the cost price, an increase in the price of the remaining volume would allow the sugar market to close the year with an acceptable profit.
In solving the problems of the sugar industry actively joined the Ministry of Agriculture, the head of which, Tkachev (the minister’s family owns several sugar plants!), persistently voiced the demand for the EEU partners to abandon raw sugar (last season Belarus and Kazakhstan have imported 371 thousand tons of raw sugar and 14 thousand tons of white sugar). Sugar exports by the EAE countries outside the TS last season amounted to 145 thousand tons for Russia and 45 thousand tons for Belarus, so it is quite possible to reduce the surplus by 371+14+145+45=575 thousand tons and solve the problem of overproduction.
Sugar exports from the Russian Federation by rail amounted to 7.6 thousand tons, in the first half of September. 6 thousand tons from that volume was delivered outside the EEU.
A survey of the expected minimum price in the 2017/18 season made by Sugar.Ru showed that the market participants are mainly divided into «optimists» waiting for price in corridor from 23 to 25 RUR/kg, and «pessimists» - 19-21 RUB/kg
KYRGYZSTAN
The sugar plant OJSC "Kaindy-Kant" has started receiving sugar beets since 12 September, 2017. The expected beet harvest amounted to 850-900 thousand tons.
KAZAKHSTAN
Kazakhstan uses an import quota of raw sugar from third countries only to process it for its own needs, there is no question of re-exporting sugar to Russia, said the Economy Minister Timur Suleimenov.
According to the Minister, there are no violations by Kazakhstan, because this quota is set at the level of country’s needs.
UZBEKISTAN
Uzbekistan will abolish the import duties and the excise duty on cane or beet sugar and chemically pure sucrose, in solid condition, since September 15, 2017.
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