As of October 3, 348 thousand hectares have been harvested, while 15.2 million tons of beets have been harvested.
Sugar production in Russia increased: from August 1 to October 3, it was produced by 23% more than in the same period last year.
The output of products in the indicated period amounted to about 1.66 million tons. This was stated by the Union of Sugar Producers of Russia.
In parallel, sugar beet harvesting continues.
According to the Eurasian Sugar Association, as of October 3, 348 thousand hectares have been harvested, while 15.2 million tons of beets have been harvested.
This is 200 thousand tons more than in the same period of the previous year. True, there is a decrease in yield per hectare: over the past month it has fallen by 7%, to 437 centners per hectare.
Sugar factories are connected
As of September 19, 61 out of 68 existing sugar factories were already operating in Russia, today there are already 63 of them. All the rest are expected to be launched soon.
It is planned that as a result, sugar production this season can reach up to 6.4 million tons, which is a record in recent years.
This will largely stabilize the situation on the market, both Russian and global.
According to the International Sugar Organization, up to 181 million tons of sugar can be produced in the world during the current season, which means a surplus of about 5.6 million tons.
This is largely due to the resumption of production in India, Thailand and Brazil.
Will prices go down?
Looking globally, the estimated surplus has already seen sugar futures for March 2023 delivery trade 5% cheaper than this October delivery.
The Russian Ministry of Agriculture also says that there are reasons to expect a decline in sugar prices.
According to Deputy Minister Oksana Lut, over the past year, sugar has risen in price very much, the price increase was 47%, as a result, a kilogram of sugar costs 50 rubles.
But with high production expected this year, prices should pull back a bit. The produced amount will definitely be enough for domestic consumption, although, just in case, the possibility of importing up to 120 thousand tons of white sugar is left.
At the same time, Russian sugar producers are asking the government not to allow duty-free importation of sugar into the country from abroad, because this creates unnecessary competition and may lead to a decrease in the area under sugar beet crops in the coming years.
