Sugar is getting cheaper amid rising prices for other products: year-end price analysis
14 November 13:58
ANALYSIS
Inflation in Ukraine’s consumer market rose by 1.8% in October compared to September, and has already increased by 8.4% since the beginning of the year. This was reported by the State Statistics Service of Ukraine. Core inflation, which takes into account only the main groups of goods, amounted to 1.3% in October, which also confirms the trend towards a gradual increase in prices – since the beginning of the year it has reached 8%. However, there are products that have fallen in price. Details are in the article of Komersant ukrainskyi.
In October, prices for food and non-alcoholic beverages increased by 3.2%. Vegetables (by 18.2%) and eggs (by 18.1%) were the most expensive. Significant price increases were also observed for such goods as butter, fruit, dairy products, sunflower oil, processed cereals, meat, and fish. Prices for these products increased by between 1.3% and 6.9%. Alcoholic beverages and tobacco products went up by 1.8%. At the same time, some products fell in price. Among them is sugar. In an exclusive commentary to , Danylo Maistrenko, Deputy CEO for Commercial Affairs at ECO MARKET, provided details.
“The price of sugar will continue to decline, because the demand for this product is very price elastic. ECO MARKET usually reduces the price of sugar several times a month, because it is an essential commodity that everyone needs,”
– said Danylo Maistrenko.
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The price of sugar in Ukraine may drop to UAH 18
According to the State Statistics Service of Ukraine, sugar prices have decreased by 4.2% and continue to fall due to export restrictions to the EU
According to analysts, wholesale prices from factories may fall to UAH 18-19 per kilogram. Such data was made public during an analytical briefing by the agricultural cooperative PUSK, created within the framework of the All-Ukrainian Agrarian Council (AAC).
According to the cooperative, Ukrainian sugar remains mainly on the domestic market, as exports to the EU are limited until 2025. Despite attempts to supply sugar to Turkey, Macedonia, and other countries, it has not yet been possible to significantly reduce stocks, which leads to oversupply on the market and lower prices. Currently, some factories have reduced wholesale prices from the previous UAH 21.50-22 per kilogram to UAH 21. According to forecasts, the price may fall even lower to UAH 18-19 per kilogram.
The situation on the global market is different: due to the drought in Brazil and fires that damaged 5-8% of sugar cane crops, there has been a significant increase in sugar prices. This increases pressure on the Ukrainian market, where demand for sugar remains limited due to the impossibility of free exports.
