IKAR in Mass Media

Russian 2007 raw sugar imports seen up yr/yr on duty

18 февраля 2008 года

MOSCOW, Dec 10 (Reuters) - Russian raw cane sugar imports have risen to 3.28 million tonnes in calendar 2007 from 2.62 million last year on the expectation of a higher import tariff that was eventually set from Dec. 1, analysts said on Monday.

The independent Institute for Agricultural Market Studies (IKAR) said in its monthly report that imports in November rose to 293,400 tonnes from 193,423 tonnes in October and 155,757 tonnes in November 2006.

"As of the beginning of December, another 18,000 tonnes were being unloaded and more than 238,000 tonnes had already been cleared through customs," IKAR said.

The institute said practically all importers had managed to clear their shipments at the previous tariff of $140 per tonne, before the current $220 per tonne duty became effective.

It said another 230,000 tonnes were on their way to Russia for December and January. IKAR said that some of this could be refined in Russia and then re-exported on a tolling basis. The rest is destined for Central Asia and Ukraine.

Russia has set a tariff of $220-$270 per tonne of imported raw sugar from Dec. 1, 2007 to May 31, 2008 to protect domestic sugar beet growers and refiners from excessive imports. The rate of the tariff is pegged to New York sugar prices.

It will stay at $220 per tonne in January 2008.
"Massive imports of sugar in the last several months have created a real over-saturation of the market," IKAR said, adding that domestic sugar stocks may rise to 2.6 million tonnes by the end of December from 2.1 million a year ago.

It said Russia was unlikely to import any sugar in the next five months, while the tariff remained in force. Only some sugar for processing and re-export could be expected in the Black Sea port of Novorossiisk from February.

Russia consumes about 5.8 million tonnes of white sugar, refining more than half of it from domestically grown beet. Most of the remainder is refined from imported cane raws. Brazil, Cuba and Thailand are the main suppliers.

The share of Argentine raws is also rising and the first shipment of sugar from India has landed in the far eastern port of Vladivostok, IKAR said. It expects Guatemala to start shipping its sugar to Russia in the first quarter of 2009.

Source: Reuters | #sugar | Comments: 0 Views: 68

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