Russian government instructed to prepare measures to curb prices for vegetable oil and sugar

Sugar

Other Edible Vegetable Oil

Russia

Published Nov 16, 2021

Tridge summary

Deputy Prime Minister Victoria Abramchenko instructed the Ministry of Agriculture, the Ministry of Economic Development, the Ministry of Industry and Trade and the Federal Antimonopoly Service to prepare a forecast for the government on domestic prices for sugar and vegetable oil, as well as proposals to contain them "taking into account the global trend of rising food prices," RBC writes. The representative of Abramchenko confirmed to the publication the fact of the order, the press service of the FAS and the Ministry of Economic Development reported that they had received the order. The Ministry of Industry and Trade clarified that the main executor is the Ministry of Agriculture. The representative of the agricultural department told RBC that this year the production of sugar beet and sunflower is expected to grow, and the harvested crop "will provide the domestic market with processed products in the required volumes.

Original content

" To maintain a stable situation in the sugar market, the ministry is considering the possibility of introducing a tariff quota for the import of sugar and raw sugar in 2022, and in the sunflower oil market it allows the possibility of revising the "floating" duty upward with a sharp rise in the cost of sunflower in Russia and the world. On the horizon of eight weeks, the risk of an increase in world sugar prices decreased due to the expectation of a good harvest in Thailand and Brazil, and domestic prices will be restrained by the extension of the tariff quota for the import of white sugar into Russia until the end of 2021, a representative of the Ministry of Economic Development told RBC. Sunflower and sunflower oil in the next two months around the world may rise, but the impact of world prices on domestic prices will weaken the expected increase in the production of sunflower oil in Russia under the current export duty. There will definitely be volatility in the global ...

Source: AgroInvestor