Vinnytsia region authorities to introduce sugar sales State monopoly

04.09.2007 13:00 "Agro Perspectiva" (Kyiv) — Vinnytsia Regional State Administration (RSA) has proposed to establish sugar sales State monopoly in order to regulate domestic market pricing policy, reported Vasyl Cherniy, Vinnytsia RSA Deputy Chairman, on Ministry of Agrarian Policy Aug 31 regional session.

“As it seems, sugar sales State monopoly is necessary to be introduced for some transitional period,” declared Cherniy.

Deputy Chairman also suggested it is necessary to found State-owned company specializing in sugar selling. “In this case there won’t be any sale prices problems, since this company will be the only in Ukraine to accumulate all State sugar resources,” recapitulated Cherniy.

As to Agro Perspective earlier report, Ukrainian sugar producers believe current sugar market prices regulation made through mechanisms of sugar/beet minimal purchase prices is low-efficient.

As to Agro Perspective, VR had granted Cabinet right to change sugar minimal purchase prices within current MY in case of market conjuncture alterations.

2006/07 MY sugar minimal price was set UAH2,375 per MT (VAT excl.); 2007/08 MY sugar minimal price is set UAH2,083 per MT (VAT excl.).

Experts estimate domestic sugar market annual capacity 2.2 mn MT.

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