Photo from UNIAN
The fall to 1.4 million tonnes is expected.
Sugar production in Ukraine in the 2019-2020 marketing year (MY, September 2019 - August 2020) could be reduced by 22% compared with the previous marketing year.
The fall to 1.4 million tonnes is expected , as reported by the press service of the National Association of Sugar Producers of Ukraine "Ukrtsukor" with reference to a head of the analytical department with Sucden Company Maryna Sidak.
"In the next season, sown areas in Ukraine will be reduced by 11% to 250,000 hectares, while sugar production is expected to reach 1.4-1.6 million tonnes. In addition, there will be an increase in transitional sugar reserves due to the accumulation of unrealized export potential," reads the statement.
The expert noted that the reduction in acreage, and as a result, a decrease in sugar production, will be caused by high prices for grain crops.
Read alsoPrice of borsch vegetable kit almost doubles in 2018
"Considering the protectionism policy of Uzbekistan, which the government of the Republic adopted to protect the interests of the national producer, re-introducing a value-added tax (VAT) of 20% as a customs payment, competition for markets with India, Pakistan and other countries will increase next season," added Sidak.
Among the main global trends in the sugar market in the 2019-2020 marketing year, the expert also noted a decline in sugar production, a shortage in the global sugar market, and a rise in world prices for said products.
As UNIAN reported earlier, Ukraine in the sugar refining season in MY 2018-2019 reduced sugar production by 15%, to 1.7 million tonnes.
According to the Fiscal Service, Ukraine in 2018 reduced sugar exports by 2.4%, to 584,800 tonnes.