Sugar makers say no reasons for price hikes

Local sugar producers say there are no reasons to expect price hikes on sugar in the domestic market, despite the drought that hit this industry as well. Alexander Coss, president of the Sugar Producers Union of Moldova (SPUM), told a news conference on Thursday, September 27, that the recent insignificant sugar price increases are of speculative nature and are caused by the pessimistic forecasts for this years’ crop of sugar beet, as well as by the specific seasonal boost in sales. In his words, the local sugar makers have no plans to raise the prices because in that case importers would take advantage and bring low priced sugar into Moldova. He assured reporters that in two weeks at latest sugar prices would stabilise. According to SPUM, the direct losses in sugar beet production caused by this year’s drought are estimated to reach 200 million lei. As a result, about 60% of farmers growing sugar beet will end the year in loss. This year the harvest of sugar beet is expected to be twice lower than last year. An average of 20-24 tonnes per hectare will be harvested, reaching a total crop of 600-660 thousand tonnes. Sugar content of beet this year is expected to stand at 14.4%-16%, in contrast to last year’s 17% at an average yield of 34 tonnes per ha. Experts say the total amount of sugar processed from the beet will not exceed 12.5% of the raw material, with total production to reach 80,000 tonnes. Last year, producers obtained 149,000 tonnes of sugar, of which 90,000 tonnes were sold in the domestic market.