OREANDA-NEWS. August 03, 2011. The Ukrainian sugar branch comes out of crisis. Production of sugar will be increased by 30 % in 2011 compared to last year. The Minister of Agrarian Policy and Food Mykola Prysyazhnyuk declared this during meeting concerning progress of sugar branch and prospects of manufacture of Ethanol fuel.

According to the head of the Minister of Agrarian Policy and Food, the measures accepted in last and present year with objective of a conclusion of sugar branch from a crisis situation have allowed to stabilize production of sugar. "If in 2009 it was produced 1.3 million tons of sugar i.e. only 64% from our demand, in 2010 this parameter was increased up to 1.55 million tons. In 2011 we expect total gathering of sugar beet more than 16 million tons and production of it at a level of 2 million tons", - Prysyazhnyuk informed.

Owing to a number of actions of the Minister of Agrarian Policy and Food on support of sugar branch it was possible to reach such parameters. In particular, the decision on granting grants to agricultural commodity producers on cultivation of a sugar beet at the rate of 500 UAH per hectare was accepted. Under this program more than thousand agricultural enterprises have got support for the sum almost of 200 million UAH.

Besides, credit maintenance of branch, in particular, through the mechanism of reduction in price of credits has been advanced. Sugar factories have had an opportunity to take soft loans for a covering of technological expenditures, purchases of a sugar beet, as well as maintenance of construction of industrial objects.

In 2011 in Ukraine the sugar beet was sown on the area almost 550 thousand hectares, that to 11% more if compared to last year. Besides, the Memorandum of the coordination of actions between the Minister of Agrarian Policy and Food and the National association of sugar producers according to which sides have incurred mutual obligations on maintenance of stability of a price level on sugar and creation of favourable conditions for effective activity of all participants of the market of sugar on February 3, 2011 has been signed. "All these obligations today are carried out", - Mykola Prysyazhnyuk emphasized.

As consequence, gathering of a sugar beet and production of sugar in Ukraine has essentially increased. "In this year we shall produce sugar to 30 % more compared to last year. Even without taking into account the passing rests of sugar it completely will provide demands of a home market and will create an export potential", - the Minister noted.