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Hi, everyone, Dmitriy Balkovskiy with an update on inflationary pressures in Russia. Commodity inflation is hitting Russian sugar market.
Russian government and the Agriculture Ministry will review the situation with the price and availability of sugar on March 31st. A complete ban on all sugar exports is one of the measures proposed for market stabilization
According to the draft resolution prepared for March 31st meeting it is proposed "to consider the introduction of a damper export regulation mechanism for white sugar, up to a complete ban on the export of sugar outside the Russian Federation until the stabilization of domestic prices for white sugar at the level of 36 rubles per 1 kg VAT included for individual and industrial consumers”.
36 rubles is about 50 cents US.
The industry group Souzrossakhar opposes the measures.
The union’s chairman, Andrei Bodin, speaks up against the draft resolution. “The consequences of these regulation can be catastrophic. I consider some proposals provocative in our situation. Today the most important task is not to scare off the capital," he said.
Bodin noted that the industry is conscientiously complying with agreements on fixed sugar prices. "There is enough sugar, we have accumulated reserves over the past three years. Today we live with these reserves," he said.
http://www.finmarket.ru/main/article/5431649