The Ministry of Agrarian Policy and Ukrtsukor agreed on sugar export volumes for the 2023/24 fiscal year

Representatives of the Ministry of Agrarian Policy and Food of Ukraine and the National Association of Sugar Producers of Ukraine ("Ukrtsukor") signed a Memorandum of Understanding, which came into force on the day of signing and will be valid until September 1, 2024, the press service of the Ministry of Agrarian Policy reported.

According to the document, the parties agreed:

• to agree on the limit volumes of sugar exports on the basis of the preliminary balance of supply and demand in 2023/24 MR and to make changes to the Annexes to the Memorandum taking into account the data of spring sowing and the state of crops,
• set the maximum amount of sugar in 2023/24 at the level of 650,000 tons.

In addition, the parties agreed to discuss the current situation on the market every month and to adjust the volume of sugar exports. In the event that the Ministry of Agricultural Policy initiates measures to change the regimes of foreign economic activity, introduce licensing or quotas, the parties will conduct preliminary consultations. The ministry will also contribute to increasing the export potential and conducting negotiations with the European Union on further duty-free export of sugar from Ukraine to the EU without quotas.

For its part, Ukrtsukor agreed to inform the ministry about export prospects and actual shipments of sugar. And upon receiving a notification from the Ministry of Agrarian Policy about the export ban, he promised to take the necessary measures to inform the public.

Against the backdrop of increased global demand for sugar, Ukraine is increasing exports, and in October it shipped 76,000 tons (compared to 25,000 tons in September and 30,000 tons in October 2022), which became a record monthly figure in recent years. The previous record of 70,000 tons was recorded in May 2023.

In total, in 2022/23, Ukraine exported 423,000 tons of sugar, and if the export ban is lifted and there are no obstacles in 2023/24, Ukraine will be able to increase supplies to 50,000-800,000 tons. The Ministry of Agriculture can adjust the export volumes agreed for the new season, since many farmers plan to increase the area of sugar beet sowing.