Economist tells what will happen to sugar prices
16 October 2024 15:37
EXCLUSIVE
In an exclusive commentary to Komersant ukrainskyi
“When we talk about prospects, we need to understand two things. The first one is the state of the harvest and what will actually happen to the sugar beet that is being harvested. And the second point is what awaits us in the future with European exports,”
– said Pendzin.
The expert explained that the current low sugar prices in Ukraine are due to restrictions on exports to Europe:
“Ukraine had a good export potential to Europe, which was blocked. And the total amount of sugar that was produced remained in the country. And it puts pressure on prices, which is why they are not growing.”
Regarding the impact of the heat wave on this year’s harvest, Penzin said it was too early to draw any final conclusions. The marketing year for sugar does not start until November, and the sugar production period is just beginning.
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The expert also reminded that beet sugar is traditionally more expensive than cane sugar, but in the past years, high world prices allowed Ukrainian sugar to be competitive on the international market.
However, for a more accurate assessment of the situation, Pendzin recommends waiting until November.
“It is better to address this issue closer to November, when we will at least understand the actual cost of sugar prices in Ukraine, what the total sugar production volumes were and what is happening with prices on the world market,”
– the economist summarised.
As reported
However, in 2025, the quotas will be even lower – by about 2.5 times. The quotas for duty-free imports of Ukrainian sugar to the EU in 2025 will amount to 109,438.62 tonnes. Anything imported over this amount will be subject to duty. This practice is called the “Deep and Comprehensive Free Trade Area” in the EU.
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