Press Release: Commission proposes to allow resale of intervention sugar for export

The sugar management committee has voted on a Commission Regulation to allow the resale of remaining intervention sugar stocks for export. Following the vote on 7 December 2006, the measure is expected to be adopted by the Commission. The new regulation is designed to help clear remaining stocks of intervention sugar, for which the monthly storage costs are very high. The current market situation presents a good opportunity to do this. The European Union needs to make use of its export rights as allowed by the World Trade Organisation. However, the EU only has a limited budget for export refunds, as following the reform, which came into force on 1 July 2006, a large part of the budget is now being spent on compensation to farmers for the sugar price cut.