The National Sugar Union of Ukraine “Ukrsahar” believes that the decision to impose a ban on the export of Sugar importing from Ukraine will prevent its producers from carrying out export contracts already concluded and depriving them of currency revenues. It will also make it difficult for companies in the industry to plan work for the upcoming season, said the association's deputy chairman Nazar Mikhailovin, the Ukrsahar press service said.
As explained by N. Mikhailovin, the government's decision to introduce a zero quota for sugar deliveries abroad from June 5 to September 15 will hit the industry, since part of the sugar present in the country is already contracted and manufacturers due to of a ban cannot fulfill the concluded contracts and dispatch the goods on time. In addition, this will negatively affect the level of foreign exchange earnings of sugar factories.
"30 sugar companies of Ukraine plan to start work in the coming season, but due to the decision of the Cabinet, it will be difficult for them to plan anything because they will not understand how to export sugar later," said the deputy Chairwoman of Ukrsahar.
He also refuted the possibility of sugar shortages occurring in Ukraine because:
- sugar consumption in Ukraine has declined due to population reduction and migration caused by a full-blown Russian invasion;
- there are temporary sugar residues because Ukrainians stockpiled in the past year for fear of food shortages;
- the sugar consumer companies have already prepared significant stocks of raw materials.
“Perhaps such a government decision will be associated with creating reserves in Ukraine to ensure food safety. But now there are reserves and the area under sugar beet has increased – this year it is 240 thousand hectares, compared to 180,6 thousand hectares last year,” added N. Mikhailovin.
"For these reasons, "Ukrsahar" will appeal to the Cabinet of Ministers and ask them to delay the introduction of zero quotas for sugar," he saidusamm.
Source: APKinform (Ukraine)