Chamber: The extension of import quotas from Ukraine threatens Czech sugar production


The Czech Food Chamber has warned that plans to expand duty-free import quotas from Ukraine pose a serious threat to domestic sugar production. Increased cheap imports, especially sugar, could lead to more factory closures and reduced self-sufficiency. The Chamber urged the government to oppose the quota hike, citing the recent closure of the Hrušovany sugar plant.
Prague – The planned expansion of duty-free import quotas on selected commodities from Ukraine threatens Czech sugar production, the Czech Food Chamber stated in a press release today. Food producers fear a repeat of the situation where cheap sugar imports were one of the causes of the recent closure of the sugar factory in Hrušovany nad Jevišovkou. As a result of increased imports, Czech self-sufficiency in sugar production could decline, and concerns are also present among poultry farmers. The Czech Food Chamber has therefore called on the government to reject further increases in Ukrainian imports.
According to the chamber, duty-free import quotas from Ukraine to the EU could increase from 20,070 tons to 100,000 tons. “If the quotas are further increased, there is a real risk that we will see more closed operations and wasted investments, not only in sugar production but also in other sensitive sectors,” said the chamber’s president Dana Večeřová.
Minister of Agriculture Marek Výborný (KDU-ČSL) said in Brussels on Monday that the first outlines of the agreement are known, but clarification is awaited from the European Commission. He considers it positive that the agreement on the future export of agricultural products from Ukraine to the EU should emphasize the increase in standards of Ukrainian production.
As an example of the impact of cheap imports, the chamber cites sugar imports. According to the Czech Statistical Office, last year the total sugar import to the Czech Republic was 81.1 million kilograms for 1.7 billion crowns, of which 27.9 million kilograms came from Ukraine, valued at 461 million crowns. In 2021, it was 3.7 million kilograms of sugar from Ukraine. Food producers point out that even small quantities can significantly affect prices in the domestic market, and the proposed increase could have a devastating impact on the rest of the Czech sugar industry, threaten jobs, and reduce the Czech Republic’s self-sufficiency in sugar production.
Last week, Slovakia, Hungary, Poland, Bulgaria, and Romania announced that they had agreed on a common position regarding the trade agreement with Ukraine and, in a joint declaration, called on the European Commission to include automatic protective mechanisms, individual volume quotas, and price limits in the final wording of the agreement to prevent destabilization of the internal market in member states most affected by the import of agricultural products from Ukraine. The Czech Republic did not join this common position.
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Source : ENR
