Russia is expected to boost production of sugar to more than 7 million tonnes in 2019, a new record, Deputy Agriculture Minister Oksana Lut said on Tuesday.
The country has doubled sugar output over the past 10 years to reduce its reliance on imports and began exporting a couple of seasons ago, mostly to nearby former Soviet republics.
The jump has led to a fall in domestic prices in the last two years, pressuring the profitability of producers. The agriculture ministry has asked independent farmers to avoid sowing more area with sugar beet until Russia develops exports.
"The sugar question is painful for the market - the price has fallen significantly," Lut told a conference in Moscow.
The white-sugar price index of IKAR, a leading agriculture consultancy in Moscow, had fallen to $309 a tonne in southern Russia by the end of last week from $531 in early 2019.
"But it is good for exports," Lut said. "If we don't make it (expand exports) this year ... I think we can catch up in 2020-2021."
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