Conditions and perspectives of Russian sugar market development
Conditions and perspectives of Russian sugar market development

Summary/Abstract: The article deals with the conditions of the sugar market in the Russian Federation and its regulatory methods. These methods determine the efficiency of the sugar beet growing branch and the sugar industry. To solve the problems of the domestic sugar market it is necessary to improve its organisational and economic mechanisms and pay attention to interbranch relations between all elements of the production chain of the sugar beet subcomplex. The aim of this investigation is to estimate the current condition of the domestic sugar market and reveal effective ways of its development, which will promote good food supply security related to the domestic sugar and sugar-containing production and increase the effectiveness of entities of the sugar beet industry. The investigation shows that the implementation of the national project and various programs in the agricultural sector has reduced the share of produced sugar materials by 10% due to imported raw. Sugar beet production is the most profitable direction in agriculture per 1 ha of agricultural crops. Under the favorable price environment, sugar beet growers can quickly increase their gross yield. However, sugar produced from sugar beet by Russian factories can be competitive due to import duties and direct state support of sugar beet growers. This is due to natural factors determining the advantage of sugar beet at a higher level of productivity and sugar content. The reduction of loss in production contributes to the growth of competiveness of domestic sugar, the improvement of storage and transportation of beet sugar can be done due to the reclamation of material and technical resources of the transport and storage sectors. The Customs Union enables Russia to increase export potential of sugar and sugar-containing production forming a favuorable price environment for sugar producers by the redevelopment of surplus. Another way to increase the capacity of the sugar market is the intensification of the growth of manufacturing output of sugar-containing products, the share of which is 40% of the sugar consumed in the country. Realisation of investment projects determining the growth of manufacturing output of sugar-containing products should be carried out comprehensively with the modernisation of production infrastructure of the sugar beet subcomplex. The success of this depends on the effective state regulation of innovative and investment processes in terms of setting-up a favorable investment climate for businesses. It includes the preferential level of rate per cent for a period of scientific and production cycle in the branch.

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