XTB: Price of sugar, higher in Romania than across the region, despite low price on commodities exchange

The average price of sugar in Romania is four times higher than the price for which it sells on the commodities exchange, as well as higher than the price of sugar in other countries in the region, according to an analysis by XTB Romania. The average price of a kilo of sugar in Romania is of USD 1.6, while on the commodities exchange it sells with USD 0.35 as of end of June. The retail price for sugar went up since 2006, even if the price on the exchange market kept going down in the last two years, according to XTB. Even so, sugar sales continued to go up, with both retailers and the producers of refreshment drinks as main buyers for this product. The same increasing trend for sugar retail prices can be found in other countries as well, but Romania is still the leader of the pack, with the most expensive sugar in the region. The average price of sugar on the retail market in Poland is of USD 1.2, in the Czech Republic, USD 0.9, and in Bulgaria, USD 1.4. The difference in price can be partially explained via the VAT level, which is the same as for other basic goods in Romania, 24 percent. Unlike Romania, other countries in the region apply different VAT levels for basic food. But even excluding the VAT impact, the price of sugar is still among the highest in Romania. Even in Hungary, which has the highest VAT level in Europe, and the only country where the VAT is higher than in Romania, the price of sugar is of USD 1.4 per kilogram. XTB is a brokerage firm which has been active in Romania since 2009. editor@romania-insider.com