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Uzbekistan’s domestic producers to sell sugar only through exchange since 2020

Business Materials 10 January 2020 19:49 (UTC +04:00)
Uzbekistan’s domestic producers to sell sugar only through exchange since 2020

BAKU, Azerbaijan, Jan. 10

By Fakhri Vakilov-Trend:

A new procedure has been introduced in Uzbekistan under which sugar produced by domestic enterprises is now sold only through Uzbek Commodity Exchange (UZEX), Trend reports with reference to UZEX.

Starting January 1, 2020, 90 percent of sugar produced in the country began to be sold on the basis of market principles exclusively through exchange trading with equal access to the exchange trading.

The exception is that 10 percent of the total production to be sold under direct contracts through its own distribution networks to consumers located in remote regions of Uzbekistan.

Sugar sellers on the exchange market are domestic sugar producers Khorazm Shakar JSC and Angren Shakar LLC. According to the exchange contracts opened by these companies, the starting price for sugar is $550.7 per ton. The delivery condition is EXW (pickup from the seller’s warehouse).

Since the beginning of this year, Khorazm Shakar JSC put up for exchange trades 2,700 tons of sugar, Angren Shakar LLC - 3,000 tons of sugar. Moreover, Khorazm Shakar JSC daily placing of sugar at the exchange auctions amounted to 900 tons, and by Angren Shakar LLC - 1000 tons.

According to the observations of traders and market experts, the price of sugar on the exchange is relatively lower than in other wholesale markets.

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Follow author on Twitter:@vakilovfaxri

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