Confectioners reported an increase in sugar prices amid an unusually high production

Sugar production in Russia has reached an unusually high level, but its prices continue to rise, said Sergey Nosenko, president of the Association of Confectionery Industry Enterprises (ASCOND), transmits Interfax.

Speaking at a conference in Moscow, he noted that over the year, average sugar prices increased by 27%, in January-February, prices again entered “growth dynamics”.

“The beet harvest and sugar production are unusually high, there is plenty of sugar, there is no need to deal with imports. But prices fly and fly,” Nosenko said.

According to him, the confectionery industry, which consumes 1.5 million tons of sugar annually, produced 2.1% less confectionery products (4.003 million tons) in 2022 than a year earlier. The consumption of sweets in Russia increased slightly and amounted to 25.5 kg per person in 2022 after 25.2 kg in 2021.

According to Interfax, the production of beet sugar in Russia this season increased by 9% and reached 5.9 million tons.

At the end of December last year, Vedomosti, citing sources wrotethat the Ministry of Agriculture has warned the largest sugar producers about the risk of a new agreement limiting prices for this product. Such a development of the situation is possible if in the first quarter of 2023 the level of the wholesale cost of this product will be higher than 50–53 rubles. for 1 kg.

December 27 Ministry of Agriculture named stable situation in the domestic sugar market, saying that it does not require additional regulation in the form of a price ceiling. The ministry explained that the increase in production and the use of duty-free imports of raw sugar maintain a stable price situation in the aforementioned market. But if necessary, the Ministry of Agriculture “may consider various options for regulating the food market, including the conclusion of price agreements based on the experience of 2020-2021,” they emphasized.