The Verkhovna Rada adopted in the second reading the bill No. 4532, which abolishes the restriction of sugar supplies to the domestic market (quota “A”), as well as the minimum prices for sugar and raw materials for its production.
According to the profile association “Ukrsugar”, 263 people’s deputies voted for the corresponding bill with the necessary 226.
It should be noted that the document was registered in the parliament in April 2016, and a year later it was adopted in the first reading.
Ruslana Butylo, head of the analytical department of “Ukrsugar”, comments that in recent years, as a result of changes in the domestic and world sugar market, the need for administrative regulation has disappeared. At the same time, the restrictions did not contribute to the increase in processing capacities, and even the production of sugar beets.
“Making sugar requires a lot of capital. But the manufacturer can not predict the volume of the quota that it will receive, for several years ahead, and can not determine the return on investment,” Butylo explains.
Also, investments are needed in the land to increase its fertility, and consequently to obtain better yield and higher sugar content of beet. Here the producers were also tied to quotas, therefore, they could not plan investments for the long-term perspective.
Let us remind that the season of sugar refining started these days in Ukraine. Five factories that have already produced the first sugar, started to work. It is expected that this year they will work for 3-4 less than last season. The production of sugar will also decline.