May 21 2003, 09:32 UNIAN

Ukraine's government considers adoption of preferential raw sugar imports law inexpedient

Government of Ukraine considers adoption of law about preferential imports of raw sugar to Ukraine in 2003 to be inexpedient. This is said in the letter of the Cabinet of Ministers, directed to Verkhovna Rada on April 30.

The letter says that import in this year of 260,000 tonnes of cane-origin raw sugar to Ukraine will entail the closing down of 22 sugar refinery plants, the cut of about 113,000 hectares of sugar beet area, the missing from state budget of about 429 million hryvnias (5.33 hryvnias = $1) and the discharging of over 83,000 employees.

According to the letter, the situation in Ukrainian grain market today is characterised by excessive supply and low demand and the available sugar resources will be enough to last till the new season of sugar beet processing even in case of maximal consumption.