Russia faces rising sugar prices and shortages; tradings divert landings

Published Apr 6, 2022

Tridge summary

Commodity companies are diverting sugar shipments from Russia, causing potential shortages and pressure on the Russian government to address food inflation. The country's sugar stocks are sufficient for now, but a supply crisis is looming due to small last two sugar crops. Russia has set a duty-free quota for sugar imports and later banned exports until August 31, but consumer sugar prices have still risen by 46% between January and March 25. The Federal Antimonopoly Service is investigating sugar producer Prodimex for price coordination with retailers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Commodity companies have started diverting sugar shipments from Russia, according to industry sources and shipping data. The move is intended to further increase domestic prices and increase pressure on the Russian government to cool food inflation. Russia needed sugar imports this year after two successive deficits in the beet crop. Thus, the interruption of shipments will result in shortages, as the country struggles to buy sugar and other basic products, 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 ...

Source: Novacana