At last Wednesday’s meeting, the Cabinet of Ministers decided to quantitatively and temporarily – only 1 thousand tons, and only for 200 calendar days – limit the import of sugar from Serbia to Moldova within the framework of the free trade agreement between the CEFTA countries. That is, in fact, unilaterally imposed import quota regime. In addition to the above-mentioned quota, supplies of Serbian sugar to Moldova will be subject to a standard customs duty of 75% (in fact – blocking duty).
As the head of the Ministry of Economy Doina Nistor stated the day before during a dialog with a group of journalists, this withdrawal from the free trade regime was carried out in a planned mode, in compliance with all formalities. Back in the summer, the Moldovan side notified its Serbian colleagues of its intention to “eliminate the market imbalance resulting from the massive import of sugar from Serbia to Moldova”.
The background of the “Serbian problem”. Ten years ago, Moldova’s sugar industry was in a similar situation: its own sugar production was equal to or even slightly exceeded the country’s needs. The domestic market was also supplied with cheap “neighboring” sugar, so exports were vital for maintaining market balance and financial solvency. At that moment, the Balkan export direction became a saving grace for Moldovan sugar producers.
However, since then (especially after the COVID-19 pandemic, during which the Moldovan authorities banned sugar exports for some reason), the situation in the Moldovan sugar industry has changed. The reason is not only the severe climate transformation (although it is also very important). The main thing is that the world sugar market is in the phase of price reduction. The export of Moldovan sugar has disappeared as such, the sugar beet sowing in our country has decreased many times. As a result, the sugar market in Moldova from a surplus market became deficit. In the previous few years, the country needed to import sugar on a large scale to maintain food security.
“Salvation” came from Serbia. The Serbian sugar beet complex is similar to the Moldovan one. It also consists of two sugar-producing companies desperately competing for sugar beets and economic efficiency. Nevertheless, according to market operators, Serbia produces hardly the most expensive sugar in the region. In this context, sugar exports to Moldova were important for Serbia. And for Moldova, the supply of even relatively expensive Serbian sugar duty-free under the CEFTA agreement was economically efficient and, from the point of view of market logic, expedient – it filled the shortage of goods.
Restoration of the market balance. According to the estimates of the Ministry of Economy, based on the calculations of the Union of Sugar Producers UPZM, the annual capacity of the sugar market in Moldova is about 63-65 thousand tons. Market operators (traders and industrial consumers-buyers) of sugar estimate the needs of the country higher – 70-75 thousand tons. At the same time, its subjects estimate the sugar demand of the food industry of Moldova (generating added value) at 15-30 thousand tons per year. The rest is eaten by household consumers, for whom even expensive sugar is the cheapest calories.
Last year, due to severe drought and a significant shortfall in the beet crop, two sugar companies in Moldova were able to produce just over 30 thousand tons of sugar. Another 9 thousand tons were available to the country in the form of duty-free quota for imports from the European Union, and another 5.5 thousand tons – in the form of preferential (10% duty) quota under the WTO agreement. These quotas are annually chosen without remainder, and in the very first days of the year and, to a large extent, by Moldovan sugar producers themselves. Finally, an important factor in restoring the market balance to a level that guarantees food security in 2024 and the first half of 2025 was the import of Serbian sugar to the Moldovan market – a total of about 30 thousand tons.
In 2025, according to the Ministry of Economy leadership, citing UPZM, the sugar production of two local companies and the available resources of imported sugar will amount to about 78 thousand tons, “which will be enough to cover domestic consumption in 2025-26”. It can be assumed that the commodity resource projected for the current marketing season already includes the volumes of sugar, which from the beginning of 2026 will be available for import to Moldova within the duty-free Euro-quota and the preferential “WTO quota”.
Besides the exemptions from the CEFTA free trade regime, the Cabinet of Ministers modified the regulation on the distribution of the preferential “WTO quota”. In the structure of this quota it is supposed to reserve the import of 3 thousand tons of sugar for industrial consumers. This part of the quota will be selected according to the standard principle – “first come, first served”.
The first, as the practice of previous years shows, are those who have solid financial resources and/or special interest to adjust the price situation on the sugar market of RM.
Iurie Perciun, Director of Puratos Mold SRL:
We are an export-oriented chocolate producer. We supply more than 70% of our products to foreign markets, mainly to EU countries. Sugar is one of the most important raw material components, which has a significant impact on the cost price and, consequently, on the competitiveness of our products. Historically, European competitors purchase sugar at lower prices than we do. In 2025, the average sugar price for food producers in Europe was 500-550 euros/t, while in RM it was 720-750 euros/t. This year, European sugar prices remain roughly the same. Whereas we continue to buy raw material on average 200 euros/t more expensive than our EU competitors. The government’s decision, which sharply limits sugar imports to the Republic of Moldova, actually creates preconditions for an increase in domestic sugar prices. And a potential rise in the price of sugar means an even greater decrease in the competitiveness of Moldovan sugar products in the EU and other demanding markets, where price plays as important a role as quality.
Sergiu Guzun, CEO of Panilino SRL:
Our company has more than two decades of experience in the production and export of bakery products. Today we export a solid range of products to a dozen and a half European countries, as well as to the USA and Canada. It is of utmost importance to us to ensure stable quality and sustainability of production costs. The main ingredients in the production process are flour and sugar, and it is sugar that has the greatest impact on the cost of finished products. According to the results of the recent participation in the international exhibition ANUGA 2025, we can confidently note that Moldova has a high export potential and competitive products of premium quality. Nevertheless, in comparison with the producers, for example, from Ukraine, a noticeable price advantage of the latter is revealed: the cost price of flour at Ukrainian enterprises is about 30% lower, and sugar – lower by 60%. In such a situation, it is very difficult for us to compete.
Boris Efimov, General Director of Orhei-Vit SRL:
We believe that it was necessary to conduct a detailed economic analysis of the consequences before almost completely closing such an important source of sugar imports for Moldovan industrial sugar consumers as the CEFTA agreement. The main argument of the supporters of this measure is “protection of the domestic market”. Butwho benefits from stopping sugar imports from Serbia? As a result, only two local sugar producing companies with foreign capital will really remain on the Moldovan sugar market . At present, Serbian sugar is sold inbulk at a price below 16.0 lei/kg, while local sugar is much more expensive. Therefore, if the sugar supplies from Serbia are stopped, the food industry companies will have to pay 2-4 lei/kg more. We are “comforted” by the fact that only for industrial consumers of sugar, 3 thousand tons of sugar will be “reserved” for import under preferential customs regime .But this is, at best, only 15-20% of the need of the food industry of RM. The rest will have to be purchased from two domestic sugar producers at inflated prices.
Adrian Lipcan, administrator of Sugar Bridge SRL:
Government measures aimed at “restoring marketbalance, protecting domestic sugar producers and consumers” are in reality anti-market and discriminatory.
As a result of their application, the highest sugar prices in Europe will remain in Moldova. Thus, under the pretext of “saving” domestic sugar production, which is still unable to get used to the habits of a market monopolist, tens of thousands of food industry workers and millions of consumers with low purchasing power are under attack.
