IKAR in Mass Media

RUSSIA MIGHT RESUME RAW SUGAR IMPORTS FROM GUATEMALA

27 сентября 2007 года

18/09/2007/ Russia might resume imports of raw sugar from Guatemala, Yevgeny Ivanov, the chief analyst at the Institute for Agricultural Market Studies (IKAR), said, citing a ruling from the Federal Customs Service.

The September 5 decree (No. 1086) includes Guatemala in the list of countries to which Russia grants tariff preferences.

A source at the Customs Service said that until now imports from Guatemala, including raw sugar, have been subject to a double duty, with the tariff amounting to 200%.

The inclusion of Guatemala in the list countries with most favored nation status will make it possible to lower the tariff rate to 100%, he said.

He added that this applies to raw sugar produced in Guatemala, not transhipments.

Ivanov said the ruling would allow Russian importers to diversify their sources of supply. “Right now Russia imports almost all raw sugar – up to 80% - from Brazil, which entails big risks. Furthermore, a large portion of Brazilian exports go through one port – Santos, and if something happens there, the world market could suffer big losses,” he said.

Also, the addition of Guatemala as a supplier of raw sugar will make it possible to reduce the premium for delivery. “There will be a chance to negotiate, knock off a dollar or two,” Ivanov said.

In coming months, Guatemala could become the second biggest supplier of raw sugar to Russia after Brazil, he said. The country is currently the world’s sixth largest exporter of this commodity. “But in the first quarter of this year, when Brazil was virtually not present on the market, Guatemala rose to third,” he added.

Russia needs an estimated 6 million tonnes of sugar per year. Raw sugar’s share of the market has been shrinking in recent years as production of beet sugar has grown.

Source: Interfax | #sugar | Comments: 0 Views: 70

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