Monday, 28 March 2011

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European Commission Tables Measures to Ensure Market Balance in the Sugar Sector

  • Monday, 28 March 2011
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  • The European Commission has presented a series of measures designed to provide operators in the EU sugar predictability for the next marketing year from October 2011. The package sets a limit for the export of sugar outside the quota (650,000 tonnes) and isoglucose (50 000 tons) for the marketing year 2011/12. It also includes the opening of an import quota of 400 000 tonnes of industrial sugar. With these measures, sugar operators received a strong signal that is attractive to grow and produce sugar. The proposals were endorsed by Member States yesterday at the Management Committee of the common organization of agricultural markets, which issued a positive opinion.
    With regard to exports of sugar outside the quota (650,000 tonnes) and isoglucose (50. 000 tonnes) for the 2011/12 marketing year, export licenses will be valid from January 1, 2012. The Commission does not take into account the possible increase in these numbers until early 2012, where more precise estimates of the production and supply available would be known.
    As for 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 market in the EU reported high prices.
    Faced with a situation of oppression in the EU sugar market, over the past few weeks the Commission presented a series of emergency measures to improve water supply during the current season (2010/11). These include the opening of an import quota of 300,000 tonnes at zero duty and the release of 500,000 tons of sugar outside the quota, and 26. 000 tonnes of above-quota isoglucose in the EU market. In the latter case, the Commission informed Member States that the full amounts have already been requested. This combined additional source of 0. 8 million tons will arrive in the coming months to help ease price pressures. If later in the marketing, maintenance and solid evidence demonstrating the need for further action, the Commission may consider additional measures, including increasing the import quota.
    Finally, the Commission announced its intention to ensure close monitoring of developments in the sugar market. If the same market conditions that arise during the following year, the Commission would be willing to take exceptional measures similar to those applied during the current season in order to ensure adequate supply in the EU market.

    (Source: http://www.foodingredientsfirst.com/news/European-Commission-Tables-Measures-to-Ensure-Market-Balance-in-the-Sugar-Sector.html)

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