Rusagro announced a 78% rise in sugar prices in the IV quarter of 2020

MOSCOW, 15 March – RIA Novosti. The wholesale sugar price of the Rusagro group jumped from 21.0 to 39.2 rubles per kilogram in the fourth quarter of 2020. The price increase was 78 percent over the same period last year, the group said in a report.

As noted in the Ministry of Agriculture, an abrupt rise in sugar prices this year is not expected.

According to the ministry, the average selling price for sugar at the time of the conclusion of the agreement on the stabilization of prices for sugar and sunflower oil in Russia was 36 rubles per kilogram for retail delivery. Since the beginning of this year, producer prices for sugar have not only not increased, but have also decreased by 1.5 percent to 35.9 rubles per kilogram.

Also, the Ministry of Agriculture stressed that all market participants fulfill their obligations in full. And a significant expansion of sugar beet planted areas by 14.4 percent to 1.06 million hectares will help keep sugar prices in 2021.

“Taking this into account, beet production this year, according to the forecast, will amount to at least 40 million tons, which will make it possible to obtain about six million tons of sugar. This volume will be enough to meet the needs of the domestic market and form carryover stocks,” the statement said.

Rusagro, in turn, noted that the price of 39.2 rubles per kilogram of sugar in the fourth quarter of 2020 indicates a return to the level of 2016. The average selling price of Rusagro sugar in 2016 was 40.6 rubles per kilogram, excluding VAT. In 2019, there was a drop in the cost of sugar, in the first quarter of 2019 – 36.5 rubles, and in the fourth quarter of that year – already 21.9 rubles per kilogram.

The group adds that all of these prices are within the scope of the December 2020 agreement, and the company's retail sugar shipments have not declined from last year's level.

Author: wedocount

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