Paris: The European Commission is preparing to reduce sugar imports from Ukraine following complaints from EU farmers that large shipments have driven down sugar prices, according to three sources familiar with the matter, reported Reuters.
The move highlights a broader challenge the EU has faced over the past three years. In response to Russia’s 2022 invasion of Ukraine, Brussels initially granted Ukraine free access to its agricultural markets as part of its support efforts. However, increasing protests from EU farmers have led to a reassessment of these policies.
Farmers across the bloc argue that an influx of Ukrainian sugar has flooded the market, lowering prices and making it harder for local producers to compete.
Sources revealed that EU Agriculture Commissioner Christophe Hansen discussed the plan to cut sugar imports during a meeting with French farm union leaders and industry representatives in late February at the Paris farm show. Although he did not specify how much the imports would be reduced, he indicated they would be “significantly lower” than current levels.
Hansen also mentioned potential restrictions on other Ukrainian imports, including grains, but did not provide further details, according to two sources present at the meeting.
When asked about the matter, the European Commission acknowledged the concerns of EU farmers and member states but declined to comment further.
Ukrainian Agriculture Minister Vitaliy Koval emphasized the importance of maintaining steady exports to the EU.
Meanwhile, Deputy Economy Minister Taras Kachka, speaking during an online conference last week, expressed hope for a fair trade arrangement.
“The EU understands that we cannot go back to the way things were a decade ago,” Kachka said. “We still have time to find a solution in the coming weeks, and Ukraine remains open to discussions to ensure transparency in trade. This issue is more political than economic.”
The EU lifted tariffs on Ukrainian farm products after Russia’s invasion, leading to a surge in sugar imports. Ukrainian sugar exports to the EU reached 400,000 tons in the 2022/23 season and exceeded 500,000 tons in 2023/24, far surpassing the pre-war quota of 20,000 tons.
As a result, European sugar prices dropped by more than 30% last year, according to EU data. However, white sugar futures have rebounded in recent months due to concerns about lower output in major producing countries such as India.
In response to farmer protests, the EU reintroduced an import quota in July 2023, capping Ukrainian sugar imports at 262,650 tons. The first part of the quota was quickly filled, prompting the EU to halt further imports, forcing Ukraine to redirect its sugar shipments to other markets, particularly Turkey, according to Ukraine’s sugar union Ukrtsukor.
A second quota, covering 109,440 tons, opened in January, but Ukraine has exported only a small portion of it so far.
According to EU data, the bloc’s sugar production fluctuates between 14.5 and 17.6 million tons annually, depending on sugar beet yields. Consumption remains steady at around 14 million tons, while imports typically range between 2 million and 3 million tons per year.
As discussions continue, EU policymakers must balance support for Ukraine with the economic realities facing European farmers.
