OREANDA-NEWS. April 05, 2010. The largest domestic sugar producers in Ukraine, such as Astarta <AST PW HOLD> (17.8% domestic sugar market share in 2009), Ukrros <UROS UK U/R> (10.3%), Ukrprominvest (8.1%), Rise (8%) and Panda (under 5%), asked the Cabinet of Ministers to redistribute the quotas for cane sugar imports in 2010 changing those that were valid in 2009. According to the previous redistribution of quotas, Ukrros and Ukrainian Sugar Company were to import 70kt and 33kt of cane sugar in 2010, while the other four Companies, also from among the largest sugar producers, were not identified. In its turn, the Government requires the sugar producers to decrease their sugar prices to UAH 6-6.5 per kg (from the average price of UAH 7) for the nearest five months.

Millennium Capital expect that the government will hammer out an agreement with the sugar producers, since a decrease in sugar prices is one of the key issues in curbing the inflation. This news, along with the additional contract with the Belarusian sugar producers to import 100-150kt of beet sugar in 2010, will reduce the sugar deficit in the country, thus restricting the internal price growth.