IKAR in Mass and Industry Media

No word as Russia sugar tariff deadline imminent

Reuters

MOSCOW, Feb 15 (Reuters) - The deadline for a cut in import tariffs on raw cane sugar imports to Russia, Belarus and Kazakhstan was set to expire on Tuesday with no word from the their customs union on what the new level would be.

An analyst from the Institute for Agricultural Market Studies (IKAR) said the delay was likely caused by Kazakhstan, which had so far failed to approve a proposed cut in import tariffs to $50 per tonne from $140 per tonne.

"As far as I know, last week there were two signatures under the draft order, Belarus and Russia," IKAR analyst Yevgeny Ivanov said. "This draft was sent to Kazakhstan. The tariff rate now depends on Kazakhstan."

He added, "If they sign it in the next few days or hours, we may have $50 per month from March. If they don't, we may have $50 from April or May."

Russia, the world's third-largest sugar buyer, applies a floating raw sugar import tariff to protect its domestic sugar beet industry from excessive imports and pegs it to the sugar price in New York.

The Customs Union published the price calculations that would normally underpin a new tariff, but no tariff was published with them on its website. (www.tsouz.ru)

Under customs regulations, the $50 level can become effective automatically without Kazakhstan's signature from May 1. The union has previously applied a seasonal tariff in the range of $50-$250 per tonne from May to July 31.

Russia's sugar producer's union declined to comment.

It was not immediately clear why Kazakhstan had not signed the order.

A Kazakh agriculture official said in January the Central Asian country, which has an exemption allowing zero tariff deliveries for seven major Kazakh sugar companies, was unlikely to block the tariff cut.

17.02.11

All viewing: 128
Discuss