Reasons for rising prices of sugar powder in Azerbaijan…

According to data from the State Statistics Committee (SSC), Azerbaijan's sugar and powdered sugar production in January-April 2023 amounted to 99.2 thousand tons, slightly lower than the 99.5 thousand tons produced during the same period in 2022, marking a decrease of 0.3 thousand tons. Official statistics indicate that Azerbaijan's annual consumption of sugar as a food product ranges from 260 to 270 thousand tons.

In terms of exports, Azerbaijan shipped 18,581 tons of sugar abroad during January-April 2023, compared to 14,448 tons in the corresponding period of 2022, reflecting a 28.6 percent increase (4,133 tons).

Sugar beet, a key raw material for sugar production, is also cultivated in Azerbaijan. The SSC reported that in 2022, sugar beet production reached 222.7 thousand tons, representing a 15.3 percent growth compared to the previous year.

The State Service for Antimonopoly and Consumer Market Control, under the Ministry of Economy, assured Turan news agency that there is currently no shortage of essential consumer products in Azerbaijan, including powdered sugar. The agency highlighted the government's efforts to build reserves of powdered sugar within the country. The service further noted that the pricing of powdered sugar in Azerbaijan is determined by market forces, based on supply and demand, as well as international market prices.

Vahid Maharramov, an agriculture expert, expressed concerns about the state of the sugar industry in Azerbaijan. He explained to RadioAzadlig that Azerbaijan meets its needs for sugar raw materials by 95 percent through imports, producing only 5 percent domestically.  Maharramov noted that while there has been a recent increase in sugar prices globally, the impact has been more pronounced in Azerbaijan due to the country's heavy reliance on imports and the monopolization of the industry.

The expert highlighted the potential for sugar beet production in Azerbaijan, stating that favorable conditions exist for cultivation. However, he cited challenges such as low productivity, lack of skilled personnel, limited access to production resources, high fertilizer prices, and inadequate irrigation water as significant obstacles that need to be addressed to incentivize farmers and boost production.

The observations made by Vahid Maharramov shed light on the complexities and constraints faced by Azerbaijan in the sugar industry, highlighting the need for reforms and support to improve domestic production and reduce dependency on imports.