Moldovan sugar producers suspend exports to secure needs of domestic market
Moldovan sugar producers have decided to suspend exports in order to head off an eventual crisis on the domestic market and to stop further increase in sugar prices. The decision was taken on 15 February by the council for sugar output after 1.5 hours of heated discussions.
"The discussions were sometimes tough, sometimes friendly, but we managed to adopt a decision," Agriculture and Food Minister Vasile Bumacov said after the council's meeting. He added that the government's eventual intervention on the market by administrative measures should be the last resort. "We have enough sugar to cover the internal consumption. Yet, in order to prevent a crisis, the council adopted this decision," the minister added.
The manager of the main sugar-producing company Sudzucker Moldova, Alexandr Koss, confirmed that there are sufficient reserves "to cover the consumption until the new harvest". "The situation on the market will be stable and the prices for sugar would probably drop," Cross noted.
The increase in prices on the local market was triggered by the rise in prices in the countries from the region and on the international market, the commercial director of the Magt-Vest company, Petru Gutuleac, said.
In the last two months, the price for one kilogram of sugar hiked from 11.5 lei to 15-16 lei (0.96 euros). In 2010, the sugar production exceeded 100,000 tones, while the consumption needs amounted to 65,000 tones. Both companies exported 28,000-29,000 tones. The problem emerged because of higher costs on the Ukrainian and Romanian markets, where large amounts of Moldovan sugar are exported.
Moldpres
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