Russia faces rising sugar prices and shortages as traders divert shipments

Published 2022년 4월 7일

Tridge summary

Commodity traders are diverting sugar shipments from Russia, causing domestic prices to rise and putting pressure on the Russian government to address food inflation. Russia's sugar stocks are expected to run out by September, due to small last two sugar crops and disrupted shipments, leading to potential localized shortages. The government has set a duty-free quota for sugar imports and banned exports until August 31, but these measures have not prevented a 46% rise in consumer sugar prices between January and March. Investigations into retailers and sugar producers are ongoing in an effort to control prices.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Commodity traders have started to divert sugar shipments from Russia, according to industry sources and transport data, a move aimed at further increasing domestic prices and increasing pressure on the Russian government to cool food inflation. Russia needed sugar imports this year after two successive deficits in the beet crop, and the disruption to shipments will result in deficits as the country struggles with buying sugar and other staples, industry experts said. Sugar is widely used in Russia, including for preserving fruit and making vodka. Many Russians are stocking up on the sweetener and other staples after unprecedented Western sanctions were imposed on Moscow following the February 24 invasion of Ukraine, hitting the ruble and pushing up food prices. Russian Deputy Prime Minister Viktoria Abramchenko told state TV Rossiya 1 on Wednesday that the country has enough sugar stocks to meet demand before the new beet crop arrives in September. But industry data points to a ...
Source: Canaonline

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