With the entry into force of the government decree on the ban on sugar exports, Mikhail Mishustin decided to maintain stability in the domestic food market until August 31, 2024. The exception is shipments to the EAEU countries: 28 thousand tons to Armenia, 5 thousand tons to Belarus, 120 thousand tons to Kazakhstan, and 28.5 thousand tons to Kyrgyzstan.
The draft decree was developed and prepared by the Ministry of Agriculture back in March, and the discussion of the sugar export ban in the agricultural sector took place at the end of February. This decision was made due to the intensification of sugar exports abroad and will help maintain reserves at a sufficient level and support the needs of EAEU partners.
External demand for Russian sugar has significantly increased due to high commodity stocks and low prices. Exports amounted to about 700 thousand tons of sugar in the 2023/24 season. Export restrictions until the end of August and good beet production in the next season will put pressure on prices and negatively impact processors and beet growers.
According to the Eurasian Sugar Association, sugar production from beet syrup and molasses continues at six plants in the EAEU countries. The total sugar production volume reached 7.53 million tons, and sugar beet production in Russia is estimated at 6.8 million tons.
