Agrarian Fund public specialized budget-funded company puts the sugar beets sowing campaign under a threat and destroys sugar production in Ukraine, the Ukrtsukor national association of sugar producers of Ukraine has said in its address to the Ukrainian president, prime minister and agricultural policy and food minister.

According to the document, sugar made in 2014 and 2015 (500,000 tonnes and 1.4 million tonnes respectively) is enough for domestic consumption. The prices of sugar did not change in the past four months, which is evidence of stability on the market.

"The situation on the market did not require the interference of public institutions which goal is to regulate the price and supply on the market. However, Agrarian Fund of Ukraine in the form of selling additional volumes of sugar at the prices 20-30% lower than the market prices commits a crime against the state. There is no other explanation to these actions, but misappropriation of state reserves with the purpose of becoming richer for some officials," the association said.

Sugar producers said that the legal sugar market is actually stopped, as sugar refineries cannot sell sugar at the justifiable price: illegal sugar comes to the shelves at the prices and they are considerably lower than its production cost in Ukraine and in the world.

"The absence of funds at sugar producers makes unreal the current sugar beet sowing campaign," the association said.

Ukrtsukor said that the whole sector could be lost and dozens of thousands of people could lose their jobs.