Volga Baikal AGRO NEWS Update on the Situation on the Sugar Market in Russia !!!
The Ministry of Agriculture of the Russian Federation estimates the situation on the Russian sugar market as stable.
On Tuesday Rosstat published an estimate of the consumer price index in September 2020. According to the statistics department, granulated sugar in Russia last month rose in price by 7.8% versus August of this year, sunflower oil – by 2.63%. Compared to December 2019, the increase in prices for these products amounted to 33.11% and 7.24%, respectively, to September 2019 – 12.12% and 6.61%, respectively.
“The Ministry of Agriculture assesses the current situation on the sugar market as stable,” – said the ministry. According to the data of the Ministry of Agriculture, as of September 30, the prices of agricultural commodity producers for sugar amounted to 35.12 rubles / kg (including VAT).
“Due to a significant increase in production, the price of sugar in 2019 decreased, and in 2020 there was a recovery, which, among other things, was facilitated by a low forecast for the sugar beet harvest due to the drought,” – adds the agricultural department.
Sugar production in Russia has exceeded consumption in recent years. The volume of beet sugar production in the 2019/20 agricultural year in Russia amounted to about 7.6 million tons, and its consumption – about 6 million tons. Significant production volumes led to the formation of significant inventories, which, in turn, influenced a decrease in prices for sugar.
Thus, at the end of 2019 and at the beginning of 2020, wholesale prices for sugar were twice as low as at the end of 2018, and were at multi-year lows. According to Rosstat, the sown area for sugar beet in Russia in farms of all categories in 2020 amounted to 927.8 thousand hectares, which is 19% less than a year earlier.