Brussels, 18/05/2011 (Agence Europe) - In Brussels on Tuesday 17 May, the European Commission entered an objection to Poland's requests to increase the level of the intervention price for cereals and sugar quotas. These requests were made under 'any other business' at the Agriculture Council.
Cereals. Poland asked for the intervention price in the cereals sector to be increased from 101.31 euros per tonne to 130 euros/tonne. The Commission explained that the level of intervention prices must reflect the safety net function of the public intervention. This net should be triggered only to respond to serious crises on the markets. "We could not go back to a policy which belongs to the past, when the level of the intervention prices ensured viability for the largest number of producers and constituted a profitable outlet for them", said the Commissioner. He went on to explain that increasing the intervention price to 130€/t would reduce the competitiveness of European cereals production, both on the EU market and the global market. Furthermore, it would increase the volume of subsidies, creating distortion on the market, which would have to be notified to the WTO and would risk jeopardising the negotiating position of the EU in the Doha Round of trade liberalisation. The Commission stressed that cereal prices are at historically high levels today.
Sugar. Poland, supported by Slovakia and Romania, amongst others, called for an increase in sugar quotas. Poland suggested raising sugar production quotas for each Member State by 15%, starting from the growing year 2011/2012, or an increase of 5% for three successive growing years, starting from 2011/2012.
Several countries took the floor to stress that it is not just the aspect of sugar quotas which needs to be taken into account in any changes (there is also the question of the refining sector and imports). Germany, amongst others, took position against increasing quotas. Any increase in quotas decided on by the Council would lead to (with a return of imports from the ACP countries to their historical level) a situation of over-supply on the European market, the Commission warned. Mr Ciolos pointed out that the current regime in the sugar sector expires at the end of the growing year 2014/15. In the framework of legislative proposals on the reform of the CAP anticipated for October 2011, the Commission will make proposals "to ensure the future of the European sugar sector and the balance of the market", the Commissioner concluded. (L.C./transl.fl)