Brussels, 20/12/2006 (Agence Europe) - At the meeting on Tuesday 19 December of EU agriculture ministers, the European Commission called on Member States to speed up their sugar sector restructuring programmes. It also proposed a measure which would allow the EU chemical industry to buy its sugar on the world market: an import quota of 200,000 tonnes of sugar from third countries.
Just as she had done at the previous Agriculture Council (see EUROPE 9326 and 9313), Agriculture Commissioner Mariann Fischer Boel strongly encouraged Member States to rapidly submit their programmes for the renunciation of sugar quotas, as provided for in the reform of the sector. The results of the first year of implementation of the reform have been good (2006-2007): 1.2 million tonnes of sugar and 320,000 tonnes of inuline syrup have been removed (with €730 per tonne restructuring aid), which is above the Commission target of 100,000 tonnes.
The Commission says the situation is worrying for the second year of implementation of the measures (2007-2008). It complains that so far there has been little intention shown to renounce production quotas: 700,000 announced in November, to which a further 300,000 tonnes has been added. Requests have to be submitted by January to receive aid, which Ms Fischer Boel pointed out, would be lower next year. The quantity of sugar to be removed is well below the expected 3.5 million tonnes. If this situation is not remedied, the Commission will have to introduce a compulsory quota reduction in 2010, and this would affect every producer, even the most competitive, the Commissioner warned once again.
The Commission also announced that it was going to propose to the management committee that a 200,000 tonne import quota be permitted to allow the chemical industry to buy sugar at world prices. The management committee vote is not expected before January 2007. This measure is required given the paradox that Community production is too great and the chemical industry cannot find the quantities it requires at world prices within the EU. (lc)