Strasbourg, 04/10/2000 (Agence Europe) - On Wednesday, the European Commission adopted a proposal that aims to prorogue the common market organisation (CMO) in the sugar sector beyond the 1st July 2001, but with several modification, while awaiting a more in-depth reform which should be introduced in July 2003. The Commission is proposing: (1) a permanent reduction in the annual quota for production by 115,000 tonnes, (2) the removal of the reimbursement for the cost of storage to producers (which will lead to a saving of around EUR 300 million per year), (3) the removal to the obligation for minimum storage of 3% to which are held the producers and (4) the simplification of the CMO through a remoulding of the rules and the shortening of the outdated provisions. In the future, the production levy will finance 100% of the special aid for the chemical industry which uses sugar. The quota systems, the contribution to the production to finance the export restitution and the special preferential import system for ACP sugar and from India will continue to apply until the 2002/2003 harvest year.
Before the press, Commissioner Franz Fischler, underlined that this reform must enable to simplify the present system, to increase competition (in the system as it exists there is little, or even no competition at all between enterprises) and to guarantee a reasonable price for sugar on the Community market. This revision is only a stage while awaiting the more in-depth reform. In the meantime studies on the competition in the foodstuff industry and on the impact of the modification to the quota system for consumers and on competing products, should enable to identify the most suitable solutions