Who benefits from sugar quotas?

27 May 2011 – After getting backing from member states in the EU sugar management committee, on 26 May, the European Commission will be releasing 200,000 tonnes of out-of-quota raw or refined sugar from any country of origin.

This decision is in response to rapidly rising world sugar prices and bad weather leaving confectionery manufacturers, and the food industry in general, worrying about sugar supply problems. The release of more sugar by the EC into the market will help prevent an undersupply in the approaching months.

EU traders may submit offers for importing sugar at a reduced import duty, and the EC will decide which bids to accept.

A second measure agreed at the sugar management committee allows for the possibility for further imports at reduced import duty via a tendering system. The tendering system would start in July.

In March, 500,000 tonnes of out-of-quota EU sugar and 26,000 tonnes of out-of-quota isoglucose were released onto the EU market. Moreover, April saw the Commission open up an import quota of 300,000 tonnes at zero import duty.

My questions are, who gains from sugar quotas? And, how does the EC decide who should benefit from preferential access, not just in terms of which countries but also which parties?