The Cabinet of Ministers has increased minimum prices for sugar by 36.7% in 2015/2015MY

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Interfax-Ukraine. Compared with the current year, the Cabinet of Ministers of Ukraine, for 2015/2016 Marketing Year (MY: September-August), raised minimum prices for sugar made of beet by 36.7%, up to 6454.73 UAH / t (excluding VAT).

According to the government regulation #189 as of April 8, in the next season minimum prices for sugar beet will be 29.8% higher — 445.87 UAH/ton (excluding VAT).

The document also sets quotas on production of sugar to supply domestic market (quota “A”): it was reduced down to 1.72 million tons — from 1.811 million tons in 2014/2015 MY.

According to the report, in 2014/2015 marketing year minimum prices for sugar increased by 1%, compared to the previous season — up to 4722.68 UAH/t (excluding VAT), sugar beet — by 1.6%, to 343.55 UAH/ton. Quota “A” amounts to 1.811 million tons against 1.826 million tons in 2013/2014 MY.

At the same time, according to the association “Ukrtsukor”, in the current season production of sugar is up by 75% — up to 2.1 million tons; while volumes of the domestic market decreased to 1.6 million tons due to decrease in the supply of sugar to temporarily occupied areas of Crimea, Donetsk and Luhansk.

Earlier, Mr. Oleksiy Pavlenko, the head of the Ministry of Agrarian Policy suggested abolishing the quota for sugar production in Ukraine.