One of largest sugar suppliers announced a sharp rise in prices

The wholesale price of sugar at Rusagro (one of the largest producers in Russia) soared in the fourth quarter of last year by 78 percent in annual terms (from 21.9 to 39.2 rubles per kilogram). This is stated in the company’s report.

Sales prices have risen sharply due to increased demand amid a small sugar beet harvest and the coronavirus pandemic. On average, sugar rose in price by seven percent over the year (from 27.5 to 29.5 rubles per kilogram), the manufacturer said.

Despite this, Rusagro’s revenue decreased in the fourth quarter by 12 percent (to 7 billion rubles), and by the end of the whole year – by 10 percent (to 28.1 billion rubles). This was due to a drop in sales in volume terms due to reduced production and limited storage capacity.

Earlier it was reported that the growth rate of sugar prices in Russia was three times faster than in the world market. In January, the production of sugar, sunflower oil and related products in the country collapsed after the price freeze.

At the end of last year, the government signed a number of agreements to stabilize prices for sugar and Russian-made sunflower oil. The maximum sugar prices should be 36 rubles per kilogram in wholesale and 46 rubles in retail.

/Media reports.