Sugar market tackled by European Commission

- Last updated on GMT

Related tags: European commission, European union

A major overhaul is planned for the sugar industry in 2003 by the
European Commission that aims to bring more competition into the
market, EUBusiness...

A major overhaul is planned for the sugar industry in 2003 by the European Commission that aims to bring more competition into the market, EUBusiness reported. The Commission will tackle overproduction and strict WTO-limits for subsidised exports by permanently cutting the production quota by 115 000 tons per year. The existing measures will continue until the end of the 2002/2003 financial year. Agriculture Commissioner Franz Fischler commented that "This modified quota regime is less cumbersome, increases competition and ensures the continuation of the drop in real sugar prices. But it also buys the necessary time to carefully analyse all alternatives to the quota regime." The sugar market in the EU is very regulated and the system, which includes quotas, guaranteed prices and import restrictions, means that EU sugar prices can sometimes rise to 300% of the world market price.

Related topics: Policy

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