Russia can significantly increase sugar exports

Published Aug 19, 2023

Tridge summary

According to the Institute for Agricultural Market Conjecture (IKAR), Russia is expected to export at least 400,000 tons of sugar this season, with an estimated export volume of 327,000 tons in 2022/23. However, the export of sugar by railway is insignificant and has not exceeded 34,000 tons per month since February 2022. The main importing country for Russian sugar is currently Kazakhstan, with periodic purchases from Kyrgyzstan, Uzbekistan, Tajikistan, Azerbaijan, Mongolia, Turkmenistan, and Abkhazia.

The low volume of sugar exports is believed to be due to difficulties in calculations, logistics, and insurance, and buyers may now demand additional discounts on Russian sugar. Russian exporters may not always offer all the types of sugar demanded by buyers, including different qualities, types, packaging, transportation options, delivery times, and payment options. However, the consumption of sugar in the mentioned countries has not ceased, and Russia can ensure a constant presence of its sugar in every available logistical market.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

This season, Russia can export at least 400 thousand tons of sugar, predicts the Institute for Agricultural Market Studies (IKAR), in 2022/23, the export volume, according to its estimates, amounted to 327 thousand tons. For comparison, in the record season 2019/ In 2020, the volume of shipments reached 1.5 million tons. Since the 2016/17 season, sugar overproduction began in Russia, while wholesale sugar prices were often below world parity. Despite this, sugar exports by rail are insignificant and have not exceeded 34,000 tons per month since February 2022. Exports by other modes of transport are also small, Yevgeny Ivanov, a leading expert at the Institute for Agricultural Market Studies (IKAR), told Agroinvestor. According to him, in August 2023, the difference in sugar prices between Krasnodar and London reached a record low. Since the beginning of 2022/23, Kazakhstan has been the main importing country of Russian sugar, while Kyrgyzstan, Uzbekistan, Tajikistan, Azerbaijan, ...
Source: AgroInvestor
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