Russia faces rising sugar prices, shortages as traders divert shipments

Published 2022년 4월 4일

Tridge summary

Commodity traders are diverting sugar shipments away from Russia, which is expected to increase domestic prices and further pressure the Russian government to address food inflation. Russia's sugar stocks are at critically low levels, and the country is facing shortages due to disrupted shipments and panic buying. The Russian government has set a duty-free quota for sugar imports and has banned exports until August, but these measures have not effectively addressed the inflation. The Federal Anti-Monopoly Service has launched an investigation into sugar producer Prodimex for illegally coordinating retailer activity, contributing to price surges.

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Original content

Commodity traders have started diverting sugar shipments away from Russia, according to industry sources and shipping data, a move set to further boost soaring domestic prices and ratchet up pressure on the Russian government to cool food inflation. Russia needed sugar imports this year after two successive shortfalls in the beet crop, and disruption to shipments will result in shortfalls as the country battles panic buying of sugar and other staples, industry experts said. Sugar is widely used in Russia, including for fruit preservation and making vodka. Many Russians have been stocking up on the sweetener and other staples after unprecedented Western sanctions imposed on Moscow following its Feb. 24 invasion of Ukraine battered the rouble and sent food prices soaring. Russia’s Deputy Prime Minister Viktoria Abramchenko told state TV Rossiya 1 on Wednesday the country has enough sugar stocks to meet demand before the new beet crop arrives in September. But industry data points to ...

Source: Hellenic Shipping News