Kommersant managed to find out this information. The publication told about the meeting held in the department.
Deputy Minister of Agriculture Oksana Lut said that the sowing of sugar beets is delayed in 2021, and that, given the expiration of the price-fixing agreement, this could lead to an increase in sugar prices.
According to Oksana Lut, the Ministry of Agriculture will recommend regional sugar producers to sell their products, primarily to retail chains.
The department proposes new measures to regulate sugar prices. Among these measures - the establishment of an intervention fund for price stabilization in the market, as well as the continuation of the policy of quotas for duty-free imports. The Ministry of Agriculture also offers producers to buy raw materials from the state-owned United Grain Company (UGC).
Earlier it was reported that from May 15 to September 30 in Russia there will be a duty-free quota for sugar imports in the amount of 350 thousand tons. Since the right to sell this product can only be obtained by companies with a share of the Russian Federation in the capital of at least 50%, the OZK will become a trader, according to market experts.
A representative of UGC said at a meeting in the Ministry of Agriculture that the company can ship 25 thousand tons of sugar by June 1 to industrial consumers at 43.5-46 rubles per 1 kg, including VAT, with delivery to Moscow.
An interlocutor of Kommersant in a large manufacturer adds that contracts for sugar with key players are concluded for one or two years, and the prices offered by OZK are not very attractive. As the interlocutor of the publication explained, the Ministry of Agriculture could allow selling concessional sugar to several traders competing with each other on price. The source of the publication also expressed the opinion that after all the restrictive measures, difficulties with the harvest and other negative factors in the market, the cost of sugar in 2022 will be "prohibitive" .
On Monday, May 17, the Ministry of Agriculture issued a statement that the situation on the sugar market remains stable. The ministry believes that the stability of sugar prices will be promoted by a quota for its imports with a reduced duty rate, as well as an expansion of the cultivated areas for sugar beets. Beet production in 2021 will amount to at least 40 million tonnes, which will make it possible to obtain about 6 million tonnes of sugar. The Ministry of Agriculture is confident that this volume will be sufficient for the needs of the domestic market.