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Russian Federation Sugar Report
Russian Federation Sugar Report
2007
Sugar beet production and processing are rising as farmers and refineries increase sugar beet acreage to implement the Russian government's plan to reach 67 percent sugar self-sufficiency by 2012. Imports and exports of raw sugar increased dramatically in 2007. In December 2007 the import duty on raw sugar will jump to $220/MT for a period of 6 months — an increase of $60/MT. Sugar imports are forecast to rise slightly in 2008, even with the higher duty in place, as domestic production cannot keep pace with consumer demand. Sugar beet producers and processors continue lobbying for even higher seasonal duties on imported sugar.
Sugar beet production and acreage increased 9 percent in Marketing Year (MY)
2007 compared to the previous year. Production acreage in 2008 is forecast to rise an additional 8 percent. In December 2007 the import duty on raw sugar will jump to $220/MT for a period of 6 months — an increase of $60/MT.
This sharp increase is a direct result of a resolution establishing a variable duty on imported raw sugar, ranging from $220 to $270/MT, based on average monthly prices on the New York Board of Trade (NYBOT) (see RS7072).
During the first three quarters of MY 2007, the import volume of raw sugar exceeded that of the entire MY 2006. In response to growing sugar imports, domestic sugar beet producers are pushing to establish long-term seasonal duties to boost the Russian sugar beet industry. In accordance with the State Program for Development of Agriculture and Regulation of Food and Agricultural Markets in 2008-2012, Russia expects to increase the proportion of granulated sugar produced by domestic sugar beets from 54.7 percent in
2006 to 67 percent by 2012 (see RS7051). Belarus has raised the value-added tax rate on Russian white sugar to 24 percent from 18 percent as of September 1, 2007.
Date: 22.11.2007
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