January 28 2002, 12:54 APK-Inform

Sugar and sugar beets. Draft law calls for new minimum prices 2002/2003

The Cabinet received a draft resolution for "certain issues of governmental regulations for sugar production and sales" as of Jan 24th.

The main highlights of such draft are:

- Setting up a minimum price of UAH 165/Mt for sugar beets starting with Sept 1, 2002 to produce sugar within the framework of quotes for domestic market and to satisfy the demand of the international agreements. Bottom sugar price for domestic market equals UAH 2,370/Mt

- Setting up a sugar quote for domestic market totaling 1,8 mn Mt to be delivered from Sept 1, 2002 through Sept 1, 2003.

There is a crucial point here. It is supposed that the ending stock of sugar at the beginning of the new season should be revalued with the minimum price adopted for the given season in mind. It is quite obvious, that such measure is directed to block the use of the ending stock from last year to sell the sugar made from new crop at relatively low prices.

It may be that such conditions will cover cane sugar as well as term sugar is not distinguished in the new draft resolution.

This document may be passed soon, believe APK Inform experts.