The government has established a new procedure for exporting sugar from the country, which is to be in effect until 2031.
A new regulation on white sugar exports, approved by the Russian government, will take effect on September 1. It is intended to set strict rules for exporters for the next five years: it is expected to remain in effect until at least 2031.
One of the main requirements for exporters is the obligation to coordinate the volumes of product they intend to export with the Ministry of Agriculture.
Obviously, the purpose of this restriction is to ensure that the ministry always knows how much sugar has already been exported from the country and how much remains. This should help prevent shortages and fully ensure the country’s food security.
The second condition: the parties to the agreement are obligated to store the required volumes of sugar in their warehouses for at least two months after the signing of the relevant agreement.
Obviously, this measure is also aimed at ensuring the availability of stockpiles in warehouses, which acts as a guarantee of the availability of a certain amount of sugar in the country.
Furthermore, this product can be sold on the domestic market. However, the price will be set by the Ministry of Agriculture. This is expected to allow for a prompt response to price changes that may occur within the country.
Finally, before exporting sugar abroad, exporters are required to undergo an inspection by the Federal Antimonopoly Service (FAS) for compliance with antitrust laws.
They will be required to submit a monthly report on the volumes of sugar exported in the previous period.
But that’s not all, as Russian companies are only allowed to export sugar in quantities that do not exceed the established quotas for the export of this product from the country.
Thus, we see that sugar exports from Russia are becoming significantly more difficult.
Meanwhile, Russia plans to export over 1 million tons of sugar this season, driven by record production volumes.
Experts note that exporting such a volume of product from the country is necessary to prevent excess inventory in warehouses and the price decline that inevitably occurs when supply significantly exceeds demand.
The measures introduced by the government are expected to make the market more transparent, but at the same time, they will not hinder the sale of pre-agreed sugar volumes abroad, experts believe.
