Kyiv: War and high gas prices have impacted the operations of sugar refineries in Ukraine as one-third of them will not be able to operate, said producers’ union Ukrtsukor on Tuesday, reports Reuters.
Sugar production in Ukraine has fallen from 5 million tonnes in the past to 1 million tonnes due to demand reduction, competition in export markets from cheaper cane sugar and rising fuel prices.
The prices of European gas have increased to $2,000 per 1,000 cubic metres which is one of the major reasons for 10 out of 32 sugar refineries not starting operations this season, said the union.
The area under beet cultivation has been reduced due to fighting in the northern, southern and eastern regions of the country and grain production is likely to fall to 50 million tonnes from a record 86 million in 2021. Beet production in Ukraine in 2021 was around 1.3 million tonnes.
At the start of the 2022/23 season, sugar stocks in the country will be 470,000 tonnes and with the start of sweetner production, the country will be able to cover both local demands as well as the exports, said the ministry.
