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EU calls for cuts in bloc's sugar production to avoid surplus

EU calls for cuts in bloc's sugar production to avoid surplus

The European Commission on Monday called for a temporary cut in EU sugar production to avoid surplus sugar stocks.
The 27 EU nations should cut their sugar production by 2 million tons, or 12 percent, for the 2007-08 production year, EU Farm Commissioner Mariann Fischer Boel said. Part of the quota for that period will either have to counted toward the quota for the following year, or be sold for industrial use, such as bioethanol.
EU governments will study the proposal and decide on a new production ceiling in October, the Commission said in a statement.
The EU reformed its sugar subsidy program in 2005, ending the dumping of cheap sugar on the world market. The reform has caused job cuts at refineries and forced many farmers out of growing sugar beet and sugar cane.
Under the old system, production was supported by generous EU subsidies and import tariffs that guaranteed and inflated price for sugar. That will now be phased out.
EU sugar prices are more than three times higher than the global market rate. The EU also pays out export subsidies to get millions of tons of sugar off its market every year.


Updated : 2021-04-10 23:15 GMT+08:00