Drought regulates prices

If this weather continues, the volume of sugar production in Russia in 2021 will not exceed 6 million tons.

In 2020, farmers reduced their sugar beet sowing, which, together with a decrease in yields, led to a noticeable decrease in sugar production in the country.

In 2021, beets were sown by 9.6% — 1.02 million hectares.

Most regions have increased the area under sugar beet crops:

Chechnya : + 75% (4.2 thousand ha)

Orenburg region and Chuvashia : + 47% (0.7 thousand ha)

Stavropol Territory : + 30% (30 thousand ha)

Mordovia : + 23% (22.1 thousand ha)

Bashkortostan : + 23% (36.6 thousand ha)

Returned to growing crops Ingushetia : 0.5 thousand hectares

And only two regions reduced crops:

Altai Territory : -1%

Volgograd region : -16%

The cold and damp weather of 2021 led to later beet planting:

South: 4-5 weeks behind 2020

Central Black Earth Region: — 2 weeks

Volga-Ural and Altai: 1-2 weeks.

At the beginning of July, the development of culture, for example, in the Krasnodar Territory, was better than the last four years:

Root mass increased by 4.7%

Haulm weight: + 18%

Planting density: + 5%.

However, if the dry weather persists, then adjustments in yield and sugar content can be significant, which will affect the price.

World prices for raw sugar from mid-April last to February this year increased by 104%. Since April 2021, prices have continued to rise.

In Russia, the cost of sugar was influenced by the growth of tariffs for railway transportation (+ 3.7%), and transportation by road via the Platon system (+ 6.4%), and the fight against overloads.

At the same time, prices are constrained by government regulation. And the promised 5 rubles / kg subsidies at the beginning of June were not received by any company that shipped sugar at retail at 36 rubles / kg.