OREANDA-NEWS. August 03, 2011. Annually Ukraine can produce more than 3 million tons of sugar. In these volumes of export capacity is over 1 million tons. Currently the Ministry of Agrarian Policy is negotiating with the Customs Union to establish a tariff quota on sugar exports in free trade regime. This was announced today Minister of Agriculture and Food of Ukraine Mykola Prysyazhnyuk during a meeting on development of sugar industry and the prospects of producing ethanol that is in Vinnitsa region.

According to Mykola Prysyazhnyuk with an increase in the sugar beet and sugar production in Ukraine has increased the number of operating of sugar factories. "If in 2009 we have worked only 56 of sugar factories, in 2010 - already 73. And in 2011, according to preliminary data, in Ukraine there are 80 sugar factories,"- said the Minister.

At the same time according to Ministry of Agrarian Policy, there are still 26 sugar factories has preserved in Ukraine which can restore their productive activities while ensuring the required quantity of raw materials. "The total capacity of all domestic sugar plants can annually produce more than 3 million tons of sugar. Under the output resource export of sugar may be more than 1 million tons worth 1 billion USD", - stated Mykola Prysyazhnyuk.

In case of increase production of the main markets for Ukrainian beet sugar may be the Russian Federation and some other countries which until 2020 will not be able to completely satisfy itself with sugar. Therefore the Ministry of Agrarian Policy according to Government order is continues negotiations with members of the Customs Union (Russia, Belarus, Kazakhstan) on establishment of tariff quotas next year to supply to Russia the Ukrainian beet sugar in the free trade regime in the amount of 100 thousand tons.

"In the future we need to achieved agreement on the gradual increase in quotas of up to 500 tons", - said the Minister.

At the same time ensuring sustainable development of sugar-beet industry and increase production needs to protect the domestic sugar market. First of all it is necessary to limit subsidized exports of sugar to Ukraine from other countries in free trade regime. Moreover, such restrictive measures shall apply to sweeteners and intense sweeteners, imported to Ukraine for the needs of food, pharmaceutical and other industries. These products are substitutes on average at least 300 tons of Ukrainian sugar.

This production are substitutes on average at least 300 tons of Ukrainian sugar.