Government established State reserves sugar purchases mechanism

24.11.2006 09:16 "Agro Perspectiva" (Kyiv) — Having issued Order «About Purchases of Sugar by Agrarian Fund for State Food Reserve,» Cabinet has set mechanism of this year State reserves sugar purchases, reported Yuriy Melnyk, Ukrainian Minister of Agrarian Policy.

«By having adopted corresponding Order of Cabinet, we have established mechanism

of purchases, which are to be in conformity with volumes stipulated by current legislation, — that is, 10% of country sugar internal consumption,» declared Melnyk.

Melnyk agreed with those reporters who suggested that this year Agrarian Fund would make 155,000 MT total sugar purchases.

«Really, this year we plan buying 155,000 MT sugar, — but it is to be minded, we have already 25,000 MT sugar accumulated since last few years as transitive reserves,» said Minister.

He admitted final sugar purchases amount would be determined additionally depending on financial resources availability.

As to Agro Perspective earlier report, National Sugar Producers Association Ukrtsukor

had forecasted this year country sugar beet crop would be not below 20 mn MT (sugar output — 2.1 mn MT).

Experts estimate domestic sugar market annual capacity 2–2.2 mn MT.

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