IKAR in Mass and Industry Media

Russia boosts raw sugar imports 20% in H1 - IKAR

Interfax

Russia imported 2 million tonnes of raw sugar in the first half of 2005, up 20% year-on-year, Yevgeny Ivanov, leading analyst at the Agricultural Market Trends Institute (IKAR), told Interfax.

Imports almost doubled from May to June, he said. July imports will likely exceed June's level.

IKAR said that 16 companies imported raw sugar in January-June, led by the Rusagro group.

The growth in raw sugar procurements by Russian traders has already been reflected in stock market trends. Despite the overall drop in prices on world food markets, raw sugar prices are continuing to grow. They increased to 9.34 cents per pound from 8.26 cents per pound from May 12-June 30.

Sugar companies increased raw sugar imports in expectation of a seasonal growth in procurements from consumers for baking, as well as from producers of beverages, ice cream and preserves. Increased demand has already been noted in a number of regions in the Urals and Siberia, as well as in Rostov region.

Ivanov said a growth in world sugar prices could lead to a slight increase - by $20-$30 per tonne - in domestic prices in the short-term. The situation will even out in the mid-term as import duties for raw sugar are lowered, he said.

Meanwhile, Ivanov did not rule out that a drop in duties could lead to a growth in raw sugar imports during the peak of Russian preparation and processing of sugar beets.

Russia produced 4.852 million tonnes of granulated sugar in 2004, down 16.9% from 2003.

13.07.05

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