Sugar independence? Kyrgyzstan will fully cover its demand for the product

Kyrgyzstan this year will fully cover its sugar needs, amounting to about 120,000 tonnes per annum. Farmers have already harvested 620.9 thousand tonnes of the root crop, delivered to eight beet receiving points in Chui and Talas oblasts.

Refineries have processed 284.3 thousand tonnes of sugar beet, and 37.9 thousand tonnes of sugar have already been produced. The total harvest is forecast at 900 thousand tonnes (this will make about 120 thousand tonnes of sugar), of which about 60% has already been harvested.

‘We expect to complete the harvesting campaign by the end of November, receiving the remaining 30 - 35% of sugar beet,’ Ruslan Rafibekov, director of the raw materials department of the OJSC ‘Kaindy-Kant’, said.

Almazbek Altybayev, head of the ‘Sugar’ cluster of the Agro-Industrial Complex Development Association, pointed out that such high figures had been achieved thanks to favourable weather conditions. The sugar beet sown area remained at the same level as last year - 15,000 hectares - but the yield has increased significantly: if last year it was 40 tonnes per hectare, this year it is already 60 tonnes.

Agrarians plan to increase planting to 16,000 hectares next year, but dry weather forecasts are raising concerns.

"The drought could negatively affect yields and increase financial risks for farmers, which could force some to abandon planting. The final decision will be made after analysing next year's weather conditions,’ Altybayev added.

He also emphasised that working with sugar beet requires more inputs and effort than other crops such as maize. To achieve stable yield growth, the crop rotation principles must be followed and significant financial and human resources must be invested.

WHAT ABOUT COMPETITION?

Earlier, the situation with a sugar surplus in Russia led to lower prices in the local market. Russia produced more sugar than it needed for domestic consumption and started exporting the surplus at a reduced price, including to Kyrgyzstan. This caused a significant drop in sugar prices in the region and allowed Kyrgyz buyers to purchase sugar more cheaply, however, bad times have fallen for Kyrgyz sugar producers, paralleling the threat to sugar security in the country. Russia has produced more than it needs this year, but there is no need to worry.

"According to forecasts, Russia will produce 500,000 tonnes more sugar this year than is required for domestic consumption. However, there is no surplus for further exports: Russia has already signed contracts to supply 350,000 tonnes of sugar to Uzbekistan and intends to send the rest to Iran. This means that Russia will not supply sugar to other countries, which excludes the possibility of a surplus in the market and a sharp decline in prices,’ Almazbek Altybayev said.

AND WHAT WILL HAPPEN TO PRICES?

Today, the sugar wholesale price in Kyrgyzstan is 64-65 KGS per kilogramme, and the retail price is about 70-72 KGS.

‘These prices are likely to remain stable until January-February until stocks begin to deplete,’ Almazbek Altybayev reported.

According to him, the highest price for sugar in the coming season may reach 75 KGS per kilogramme.