In January 2021, the production of sugar, sunflower oil and related products in Russia collapsed both in comparison with December and in annual terms. Interfax reports this with reference to Rosstat data.
The results were obtained against the background of a freeze in prices for these goods at the end of last year. With such measures, the government tried to cope with the increase in their value in stores.
439.7 thousand tons of unrefined oil and its fractions were produced, which is 12 percent less than in the previous month and 10.4 percent less than in January 2020. The situation with refined sunflower oil and its fractions is worse – 150.5 thousand tons, minus 26.2 and 20.2 percent, respectively. Less margarine was produced by 29.6 and 17.4 percent.
Beet sugar production (200.8 thousand tons) fell by 69.5 percent on a monthly basis and by 62.7 percent on an annualized basis. Rosstat explained such a sharp drop in comparison with December by the end of the sugar beet processing season, and the annual collapse was associated with a poor harvest in 2020.
Government agreements with suppliers and sellers provide for top-level wholesale and retail prices. For wholesale, the cost of sugar is 36 rubles per kilogram, and sunflower oil – 95 rubles.
In January, it was reported that small retail chains began to experience a shortage of goods. The government said that the situation is under control, and the practice of imposing price caps may be extended to other categories of goods.
Later, the Minister of Economic Development Maxim Reshetnikov admitted that the measures taken at the end of December did not work in full. Nevertheless, it is possible that they will be extended later than April, although a decision on this will be made only in March.