Brussels, 25/03/2011 (Agence Europe) - On Thursday 24 March, the European Commission tabled a series of measures intended to provide sugar operators in the EU with predictability for the next marketing year starting from October 2011. The proposals were backed by the Management Committee. The package fixes a quantitative limit for the exports of out-of-quota sugar (650,000 tonnes) and isoglucose (50,000 tonnes) for the marketing year 2011/12. It also includes the opening of an import quota of 400,000 tonnes for industrial sugar. With these measures, sugar operators received a strong signal that it is attractive to grow and produce sugar.
In a press release, the European Commission explained that with these measures, sugar operators received a strong signal that it is attractive to grow and produce sugar.
As regards the exports of out-of-quota sugar (650,000 tonnes) and isoglucose (50,000 tonnes) for the marketing year 2011/12, the export certificates will be valid as from 1 January 2012. The Commission will not consider the possible increase of these quantities until the early months of 2012 where more precise estimates of production and available supply will be known. It should be explained that the World Trade Organisation (WTO) has set a ceiling of 1.3 million tonnes on sugar produced outside quotas. The Commission is therefore proposing to set a quantitative limit of half the WTO ceiling (650,000 tonnes).
Regarding the current marketing year, world market prices for both raw and white sugar have been exceptionally high since the beginning of the year. This situation has affected the EU market with reported high prices.
Confronted with this situation, the Commission has tabled a series of exceptional measures to improve supplies during the current marketing year (2010/11). At the beginning of March, member states agreed to the release of out-of-quota sugar (EUROPE 10323) and on 10 March they agreed to the opening of a second import quota of 300,000 tonnes of raw and refined sugar at zero duty (EUROPE 10333) for the EU market. This combined additional supply of 0.8 million tonnes will arrive in the next few months to help ease price pressure. The Commission explains that in the event that later in the marketing year, updated and robust evidence shows the need for further action, the Commission will “consider additional measures including the increase of the import quotas”. (L.C./transl.fl)