April 17 2003, 11:09 APK-Inform

New version of raw sugar imports bill proposes to import 400,000t of raw sugar to Ukraine

On April 16 the draft-law of Ukraine "About Imports of Cane-Origin Raw Sugar to Ukraine in 2003" was submitted to Verkhovna Rada (VR), substituting for the previous bill of the same title, dated by January 8 this year.

The new bill proposes to establish the amount of cane-origin raw sugar to be imported to Ukraine in 2003 at the level of 400,000 tonnes. It states this amount is to be imported, a subject to import customs duty equalling 1 percent of customs value, but no less than 7 euros per tonne, in the period since May 1 till September 1, 2003. Processing of the imported raw is to be performed at plants, determined by the Ministry of Agrarian Policy on competitive terms.

The explanatory note to the bill reads as follows: "The volume of annual domestic consumption of sugar in Ukraine, with account of constantly growing demand of confectionery, beverage and dairy industry enterprises, is about 1.85 to 1.95 million tonnes. Production of beet sugar in 2002 made 1.41 million tonnes. Thus, consumption deficit of sugar constitutes some 400,000 to 450,000 tonnes".

According to its authors, the bill is primarily aimed at protection of domestic sugar market, prevention of sugar deficit in the country, minimisation of sugar cost-price, increase of domestic sugar production.

The bill's advocates also maintain that adoption of the bill will not allow for increase in domestic sugar prices, which, in turn, will permit industrial consumers of this product (confectionery, beverage and dairy industries) to keep up their markets.

The former variant of the bill, declined by Agrarian Committee of VR on March 5 this year, suggested establishing a quota for import of raw sugar to Ukraine this year in the amount of 260,000 tonnes, subject to a discount import duty, equalling 1 percent, but no less than 5 euros per tonne, for the period since April 15 till September 1, 2003.