Sugar began to disappear in Hungarian supermarkets

A shortage of ordinary sugar has started in many Hungarian supermarkets. It is becoming more and more difficult for ordinary buyers to buy it at reduced prices.

Recall that the Hungarian government introduced fixed prices for certain types of food products — that is, they cannot be higher than a certain amount. So “frozen” the prices of motor vehicles, which are scarce even now. And Hungarians even go to neighboring Slovakia to fill up their cars.

However, if everything is clear with gasoline and diesel — they are really absent in Hungary for many reasons, then the situation with sugar is not clear, because there was no lack of necessary stocks.

Now this product is enjoying great popularity — experience shows that buyers buy sugar for the first time as soon as shops open, if it is available at all.

"The amount of sugar available on the market is enough to meet the needs of the population and industry, despite the increased demand," says Arpad Dorogie, vice president of the Commodity Council and a professional organization of sugar producers.

But there are some explanations. Firstly, no large sugar factories work, for example in Kaposvara, it could produce 120.000 tons of sugar. Secondly, if the sugar beet area in Hungary a few decades ago was 100 thousand Hektar exceeded, it is now cultivated on an area of ​​less than 9 thousand hectares.

At the same time, although internal processing does not cover the demand for sugar, an insufficient amount can be covered with excess imports.

The fact is that demand is more lively this year due to price restraints and periodic shortages of stocks and is therefore above 300.000 tons.

Experts predict that there will be no more cheap sugar in Hungary next year. Because the purchase prices for sugar beets also began to rise. The price of granulated sugar, which is now available for 250-270 forints, will rise to 500-600 forints, according to industry forecasts.

Due to the rising price of sugar beet on the world market and the regulation of domestic prices, traders can sell sugar significantly below the purchase price, so this purchase is unprofitable for them.

It is also undeniable that many in Hungary are preparing to quickly lift the fixed price restriction and amass significant amounts of sugar. All chain stores and discounters tried to prevent panic buying by the population through quantitative restrictions. But that didn't help either.

Apart from that, retailers have significantly increased the prices for sugar cubes or powdered sugar, for example.

"There is a need to prepare for a permanent sugar shortage that can only be addressed by lifting the official fixed price," the analysts said

Source: UkrAgroConsult (Ukraine)

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