The decrease in world sugar supplies and the dizzying rise in prices do not currently affect the domestic market, because Serbia has enough sugar both for its own needs and for export.
The price of white crystal sugar in retail is currently stable and in some retail chains in Belgrade, consumers can buy it at a price of EUR 0.91, but also EUR 0.97, which is cheaper than in December last year, when its the price was “frozen” at a maximum of EUR 0.98.
The Republic Institute of Statistics announced that this year’s sugar beet harvest should be around two million tons, according to the latest estimate on September 5th. Estimates indicate a 22.4 percent increase in production compared to last year. Compared to the ten-year average, the expected production is lower by 16.5 percent. This year’s sugar beet crop in Serbia is expected to produce around 327,000 tons of sugar, the Ministry of Agriculture announced in the latest analysis.
These quantities will satisfy the domestic demand for sugar in the amount of 250,000 tons, as well as the export of the remaining free quantities – state the authorities. As explained, the operation of the sugar industry in Serbia is completely dependent on sugar beet, the production of which is falling from year to year, and it is burdened by the price of energy, which is increasing.
“With a more drastic drop in sugar production, it would be impossible to fulfill the export quota for the EU, but also to ensure the continuous supply of the domestic market.“ That is why a decree was passed that should increase the interest of agricultural producers in the production of sugar beet. In this way, the quantities of white crystal would be increased, which should satisfy domestic needs and enable potential export”.
By the way, the export prices of domestic white sugar, which rose significantly a year ago, have been falling for some time. The price at which sugar was exported in October was 799 euros per ton, which is significantly lower than the price in May, when it was 1,000 euros per ton.
Given the latest increase in sugar prices on world markets, it is possible to expect a renewed increase in the export price of domestic white sugar – domestic analysts estimate.
According to the data of the Customs Administration, the export of white sugar in the previous economic year (2022/23) amounted to 47,500 tons, which is 67 percent less than the previous economic year (145,300 tons).
The domestic report states that if in the next season India, which is the world’s second sugar producer after Brazil, is not present on the world market, it could further raise the prices of sugar on the stock exchanges.
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