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June 10 2002, 16:47 Interfax-Ukraine

UkrTsukor to forgive sugar mills selling at a bargain price

Interfax Ukraina reported that National Association of Sugar Makers (UkrTsukor) intends to appeal to the Cabinet asking for canceling of fines until Sept 1 2002 concerning sugar mills selling sugar below minimum fixed prices or US $ 0.45 per kg.

The Association head believes that the time is ripe to lift the fines because the market is oversupplied and sugar mills have no chance to sell the commodity in question at a price established by the govt.

"Mills just cannot freeze their sales as they have a payroll and taxes to take care of", said the representative.

The Association people believe that the wholesale prices for sugar today equal US $0.42 - 0.43 per kg.

All this meaning oversupplied market and price dive is a result of boosted smuggling of the commodity in country. The data of association says monthly smuggled imports are about 30,000MT.

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