News
27.11.2009
Ag Minister predicts part of domestic sugar mills to switch to biofuel production in 2010
“In my opinion, part of the sugar mills will switch in 2010 to making biofuel from beet or to making ingredients for mixed gasolines containing a biological component,” said Minister Yuriy Melnyk. He pointed out that several such projects already exist and are ready to 50-60%. Yu.Melnyk believes this area’s development will be promoted by a law on granting tax preferences to biofuel producers that is to come into force from January 1, 2010.
The document permits import of biofuel production equipments without charging the customs duty and VAT. It also exempts biofuel producers from the profit tax for 5 years. In addition, the Minister expressed his concern about the situation in the sugar branch.
According to him, sugar mills do not sign contracts with growers for sowing sugar beet, neither advance money for its growing. Besides, up till the very beginning of the sugar production season they do not tell the price for which they will buy the raw material. In view of Yu.Melnyk, this situation was a reason for the decrease in sugar beet areas over the recent years.
Besides, in opinion of the Minister, the sugar refineries must perform substantial upgrades, revise their beat suppliers and plan their operation for at least 80-100 days of the sugar production season so that to process at least 6-8 KMT of beet per day. He said the Ministry of Agrarian Policy had agreed with the National Sugar Producer Association UkrTsukor and the All-Ukrainian Union of Agricultural Enterprises that the latter two are to announce the market “rules of play” to growers and refiners. Reportedly, 70 sugar refineries processed the 2008 crop sugar beet in Ukraine.
