August 4 2003, 14:40

Moldova launched a 40-pc protective duty for sugar

Starting from August 1 a temporary special protective duty on imports of sugar took effect in the Republic of Moldova.

According to web-server reporter.md, the duty will be applied during 200 days, after which the government will consider the question of its extension for up to 3 years. It will be used in addition to the earlier effective customs duty for imports of sugar, and its size constitutes 40 percent of the cost of the imported commodity, but no less than 100 euros per tonne (the source has not specified the size of the previous duty).

The duty is used in imports of white sugar, cane origin raw sugar or chemically pure solid saccharose.

According to Moldovan Deputy Minister of Economy Marian Lupu, the enactment of the duty will protect local producers of sugar and will encourage sugar beet farming in the country. The sown areas of sugar beet were cut from 63,000 hectares in 2000 to 45,000 hectares in 2003, which resulted from sugar imports. This made the farming of the beet unprofitable. The import of sugar has caused a drop of prices for locally produced sugar from $320 to $294 per tonne.

Last year Moldova imported 80,000 tonnes of sugar and produced 120,000 tonnes of its own sweet product.