According to the results of the State Commission for the Protection of Economic Competition, sugar prices have dropped by 10-12% in the last two months. Such information was published by the commission's press service.

According to the source, if in June 1 kg of sugar was sold at 400 drams, today it costs 350 drams. The decline in sugar price is also important for the fact that in the period of preparation of canned food, sugar consumption is increased several times in the republic. Despite a sharp increase in demand, considerable deflation was observed.

The Commission reports that since April 2016, sugar international prices have started to record a steady increase. Particularly, according to the data of leading international companies, the international price of sugar rose by 44% in April-October 2016, which is a significant increase.

Taking into account the fact that in our country sugar is produced from raw sugar imported from Brazil, the increase in international prices could also lead to the rise in sales prices inside the country. That is why the State Commission for the Protection of Economic Competition has started to study the sugar prices monthly, since 2016, making pricing calculations by keeping the prevailing commodity market under control so as not to allow unjustified price changes. As a result, when the sugar raw material prices in the international markets increased by 44%, our growth was 9%.

At the same time, the maximum price of sugar was 390-400 drams per kilo. In other words, we can state that, despite the sharp rise in prices in international markets, we have managed to avoid price shocks and changes in sugar prices in our country have become more smooth, which did not result in significant fluctuations.

An important factor is that in recent years, the Commission has also recorded positive trends in the field of competition and the emergence of new businesses. Particularly, after joining the EEU, a number of companies have started operating in this area, which also import sugar from the Russian Federation. Thus, if earlier 10 companies were importing sugar from Russia, now the number of these companies has increased by 23.

In total, 11 thousand tons of sugar were imported from the EEU territory in the first half of 2017, which is about 10 times more than in previous years. This circumstance also had an impact on avoiding sharp rise in sugar prices in our country. Meanwhile, imports are done by both large commercial networks and private entrepreneurs who sell sugar in different regions.

"In other words, we can state that competition in this field has also intensified, there are new companies that have entered the market and have started competing with local production.

The Commission continues to follow developments in the market and will further examine the adequacy of price changes. This phenomenon positively affects the market as a whole, and with the upcoming forecasts we expect competition to become even stronger, which will lead to the reduction of market concentration, "the commission notes.

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