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Prices for confectionery will rise by 5-7% due to higher gas prices
KYIV. Sept 23 (Interfax-Ukraine) – Confectionery, the price of which in Ukraine has increased by 25-30% since the beginning of the year due to expensive sugar, may additionally rise in price by 5-7% due to the rise in prices for natural gas from UAH 7,000 per 1,000 cubic meters in April to UAH 27,000 per 1,000 cubic meters expected in October, and the share of the cost of this energy resource in the cost of confectionery goods will grow from 3-4% to 10-12%.
This forecast is contained in the press release of the Ukrkondprom association.
"This year, the increase in the cost of gas tariffs occurred monthly: from UAH 7,000 in April to UAH 27,000 in the offer of gas suppliers in October 2021. At the same time, about 30% of the sugar cost is gas costs, and in the production of confectionery goods, this share in the cost at the current price of gas will grow from 3-4% to 10-12%," head of the association Oleksandr Baldiniuk said.
Ukrkondprom noted that the rise in prices for natural gas will lead to an increase in confectionery products prices by 5-7%, while prices for them have already increased by 25-30% since the beginning of the year.
As reported, with reference to Baldiniuk in July, confectionery in Ukraine has risen in price by 15-20% since the beginning of 2021 due to the rise in sugar prices caused by the cartel agreement of its producers and a lack of supply of this product in the domestic market. Then he pointed out that "the rise in sugar prices led to quite severe economic consequences, which forced the industry to increase the cost of production by 15-20% from the beginning of the year."
"We got a situation when the industry reduced production by 25,000-26,000 tonnes, or UAH 1.3 billion in monetary terms," he said.
Baldiniuk stressed that a way out of this situation is a temporary permit for duty-free import of 60,000 tonnes of sugar from the EU, which will balance the supply and demand for it in the country without causing losses to the sugar industry.
