Sugar production in Ukraine in the 2019-2020 marketing year (MY, September 2019 – August 2020) could be reduced by 22% compared with the previous marketing year. The fall to 1.4 million tons is expected, as reported by the press service of the National Association of Sugar Producers of Ukraine “Ukrtsukor” with reference to a head of the analytical department with Sucden Company Maryna Sidak.
“In the next season, sown areas in Ukraine will be reduced by 11%, to 250,000 hectares, while sugar production is expected to reach 1.4-1.6 million tons. In addition, there will be an increase in transitional sugar reserves due to the accumulation of unrealized export potential,” reads the statement.
The expert noted that the reduction in acreage, and as a result, a decrease in sugar production, would be caused by high prices for grain crops.
“Considering the protectionism policy of Uzbekistan, which the government of the Republic adopted to protect the interests of the national producer, re-introducing a value-added tax (VAT) of 20% as a customs payment, competition for markets with India, Pakistan and other countries will increase next season,” added Sidak.
Among the main global trends in the sugar market in the 2019-2020 marketing year, the expert also noted a decline in sugar production, a shortage on the global sugar market, and a rise in world prices for said products. (UNIAN/Business World Magazine)