Russia's January-February raw sugar imports up on duty cut

08 Apr, 2010

Russian raw sugar imports more than tripled to 208,900 tonnes in January-February this year from the same period a year ago, as the country lowered its import tariff, customs data showed on Wednesday. Russia, now the third-largest sugar buyer, has cut its import tariff on imported cane raws to $140 per tonne from the previous $165 per tonne due to a rise in world sugar prices.
Analysts and producers have said that real imports were higher, as traders were unloading sugar in Russia, but delaying its clearance through customs in expectation of a further cut of the tariff to $50 from May to the end of July. However, Russia has proposed a change in the calculation of the tariff, which is pegged to the New York sugar price. The new system will take the average price for sugar for the previous month when calculating the tariff which will take effect one month after it is set.
Previously, the tariff was calculated on the basis of average price for previous three months. The market believes that if the new scheme is adopted, the tariff in May may be set at $120 per tonne rather than at $50, as sugar prices in New York have fallen. The new scheme is expected to be examined on April 16 by Russia's partners in the customs union - Belarus and Kazakhstan, as their endorsement is needed for it to become effective. The Federal Customs Service said Russian imports of coffee and cocoa rose in January-February 2010.

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