January 14 2003, 09:05 Interfax-Ukraine

Sugar prices in Ukraine started growing

Since the start of January wholesale sugar prices in Ukraine have been growing on average by 30 hryvnias per tonne each week and as of January 10 reached the point of 2,220 hryvnias per tonne, while being 2,190 hryvnias per tonne on January 3, national association of sugar producers Ukrtsukor has informed.

Association "Ukrtsukor" embraces all sugar refinery plants of Ukraine.

However, the specialists at the association are noting that sugar wholesalers are holding on sugar "in wait for better prices". They say that rise in sugar prices is being observed after December's fall, when sugar plants had to sell their product at any price, to pay off the debts.

The association forecasts the maximum growth of sugar wholesale prices in 2003 by 14.5 percent compared to the current level - up to 2,500-2,600 hryvnias per tonne. The maximum price for January is being forecast at 2,370 hryvnuas per tonne. The largest prices are expected in the period June to August, when the peak of consumption comes.

Production of sugar from the 2002 crop beet is expected at about 1.45 million tonnes - 12.2 percent less than in 2001. At the same time the specialists do not expect sugar deficit, due to availability of 350,000 tonnes of carryover stock and sugar smuggles into the country.

In 2001/02 MY (marketing year - September to August) in Ukraine there were 144 sugar refinery plants in operation, which produced 1.65 million tonnes of white sugar out of sugar beets.

Altogether, there are 192 sugar refinery plants in Ukraine for 5 million tonne total annual capacity.

Annual demand of Ukrainian sugar market is estimated at about 2 million tonnes of white sugar.