Record sugar harvest could see cheap sweets for Russia

Those with a sweet tooth could be in for a treat after record sugar beet harvests were reported in Russia.

This year farmers expect to bring in up to 4.3 million tons, which could more than halve the amount of imported sugar Russia requires to meet an annual demand for about 5.5 million tons.

And that is expected to have a knock-on effect on prices – with wholesale and retail costs falling as a result.

Trade prices for raw sugar have plummeted, Vedomosti reported, with a daily drop of 20-30 kopeks per kilo.

According to analysts from IKAR, the market prices in Krasnodar, where much of Russia’s sugar crop is processed, are down to 28.2 rubles / kilo, compared with 30.9 rubles two weeks earlier.

Andrei Bodin, chairman of the Russian Union of Sugar Producers, doubts that prices will drop below 20 rubles / kilo, but still sees plenty of scope for costs to drop.

Trade prices for raw sugar have plummeted, Vedomosti reported, with a daily drop of 20-30 kopeks per kilo.

According to analysts from IKAR, the market prices in Krasnodar, where much of Russia’s sugar crop is processed, are down to 28.2 rubles / kilo, compared with 30.9 rubles two weeks earlier.

Andrei Bodin, chairman of the Russian Union of Sugar Producers, doubts that prices will drop below 20 rubles / kilo, but still sees plenty of scope for costs to drop.

The market value is expected to reach its lowest levels in October and November at the end of the harvest season.

This is partly because, even with a record harvest, Russia remains one of the world’s biggest sugar importers.

But experts remain confident that prices will be lower, and expect to see some of those savings passed on to shoppers after farmers overtook production records established across the whole of the USSR.