MOSCOW, 15 March – RIA Novosti. The Ministry of Agriculture of the Russian Federation assesses the situation on the Russian sugar market as stable and does not expect an abrupt rise in prices this year, the ministry said in a statement.
Rusagro Group, one of the largest Russian agricultural holdings, earlier on Monday in its IFRS report for 2020 and the fourth quarter reported that in October-December last year, the average selling price of sugar increased by 78% compared to the same period last year and amounted to 39.2 rubles per kilogram excluding VAT.
“The Russian Ministry of Agriculture assesses the current situation in the sugar market as stable and does not expect an abrupt rise in sugar prices in 2021,” the Agrarian Ministry points out.
The agency points out: starting from December 2020, when agreements were concluded to stabilize prices for sugar and sunflower oil in Russia, the average selling prices for sugar are about 36 rubles per kilogram for retail delivery. As of March 10, producer prices for sugar since the beginning of this year have decreased by 1.5%, to 35.9 rubles per kilogram.
“We note that enterprises that occupy about 100% of the market have joined the agreement. All participants fulfill their obligations in full,” the Ministry of Agriculture reports. In addition, the ministry continues, maintaining stable sugar prices in 2021 will be facilitated by the expansion of the cultivated area under sugar beet by 14.4%, to 1.06 million hectares.
“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 6 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, also notes that the average selling price of sugar in the fourth quarter of 39.2 rubles per kilogram means a return of the price to the level of 2016 after the record low level of 2019. Thus, the average selling price of Rusagro sugar in 2016 was 40.6 rubles per kilogram excluding VAT, in the first quarter of 2019 – 36.5 rubles, and in the fourth quarter of that year – already 21.9 rubles per kilogram.
“At the same time, sugar sales prices on the consumer market corresponded to the terms of the agreement concluded in December 2020 to limit the retail sales price of sugar at 36 rubles per kilogram, including VAT at the bagged sugar plant. from last year's level, “the group adds.