Russia's sugar production from its own beet is expected to rise to a new record of 6.6 million tonnes in the 2017/18 marketing season which started on August 1, up from 6.2 million tonnes in the previous season, its Sugar Producers' Union said. The country has been increasing production to reduce a reliance on sugar imports. It has doubled output over the past 10 seasons and has already started exporting some production, mainly to its neighbours in Central Asia.

As of December 28, the country produced 6 million tonnes of sugar from this year's beet crop, up 500,000 tonnes compared with a year ago, the trade association said in a statement. Russia's 32 sugar refineries have already finished their processing season, while 43 refineries are still processing beet, down from the 52 refineries which were still operating at around the same date a year ago.

About 40 refineries will continue to operate in the first half of 2018 and will produce about 600,000 tonnes of sugar, the Union added. The IKAR agricultural industry consultancy expects Russia's sowing area for sugar beet to fall by 10-15 percent to 1.1-1.2 million hectares in 2018 due to relatively week global prices.

Copyright Reuters, 2018