Sugar prices projected to stabilize in Kazakhstan by autumn
There will be no shortage of sugar in Kazakhstan until the end of summer, Kazakh Minister of Agriculture Yerbol Karashukeyev stated during a briefing. According to the Minister, the necessary amount of the product in the country will be provided through imports, even despite the fact that supplies are facing some problems. Due to the geopolitical situation, logistics in neighboring countries has been suspended. Prior to this, sugar was exported from Russia and Belarus within 4 to 10 days, now the delivery currently takes up to three months. Kazakhstan now is importing products through third parties, in particular Brazil and India. As a result, over the past two years, the cost of raw materials has doubled, and the price of delivery has tripled. Now, one kilogram of sugar cane costs 450 tenge. Taking into account 15 percent wholesale and retail margins, the price should not exceed 600 tenge, the Minister highlighted.
“At the beginning of August, the country's sugar supply is expected to be 35,000 tonnes. It is planned that the product imports will be at the level of 42,200 tonnes. Taking into account the reserves of granulated sugar, we plan that the total volume of the country’s production will amount to 118,000 tonnes by the end of August. And the level of market coverage will reach 169 percent. The country has enough sugar to provide its citizens in July and August,” said Karashukeyev.