The Cabinet approved new minimum prices for sugar beets and sugar of the A quota for the marketing period of 2014/2015. The State Service for Regulatory Policy and Development of Entrepreneurship informs about this.

The Cabinet of Ministers approved rising of minimum prices for the marketing period of 2014/2015, initiated by the Agricultural Policy and Food Ministry, for sugar by 1% or by UAH 44.99 to UAH 4,723/tonne against the previous period, for sugar beets - by 1.6% or by UAH 5.45 to UAH 343.55/tonne.

According to information of the Agricultural Policy and Food Ministry, the indicated level of prices was adopted for 2014/2015 marketing year (September 2014 - August 2015, MY) by the Cabinet of Ministers' resolution “On state regulation of sugar and sugar beet production.”

At the same time, proceeding from the internal market needs, for the next marketing year, the Cabinet reduced a quota for supply of sugar to the internal market (quota A) from the existing 1.826 million tonnes to 1.811 million tonnes.

As the government analysts note, such a level of prices will ensure profitability of sugar beets and sugar production. In addition, the interested Ministry is convinced that those measures will promote stabilization of production of sugar beets and sugar, satisfaction of the state's internal need in sugar, regulation of the internal market and creation of real prerequisites for the sector's optimal functioning.

A minimum price for sugar is set annually, in the same way as the maximum quota amount for supply of this product to the internal market, in fulfillment of the law of Ukraine “On state regulation of sugar production and sale.”

Taking into consideration the scientifically substantiated per head consumption of sugar in 2014/2015 MY, this index was set at 38 kg, so total volume of consumption for this period makes up 1.811 million tonnes.

According to the Agricultural Policy and Food Ministry, sugar production in 2013/2014 MY will be 1.3-1.5 million tonnes, which fully covers the internal need thanks to record-making transitional stocks in the country. Over the previous two years, excess production of sugar was observed in the country: with the internal consumption of this product at 1.8-1.9 million tonnes a year, 2.3 million tonnes were produced in 2011, and in 2012 - 2.1 million tonnes.

Ukrinform