The European Union has cancelled tenders for importing raw cane sugar for refining at reduced duties set for January and February, due to increased sugar supplies on the EU market, the bloc's executive said on Thursday. The decision by the EU's sugar management committee followed new data from the European Commission showing that EU ending stocks for the sweetener are expected to reach about 2.8 million tonnes for the 2011/12 marketing year.
"In this context, the Commission has decided to suspend all the remaining tenders foreseen in January and February. However, we will continue to monitor the market closely and take any measures deemed necessary to ensure sufficient supply for the EU market," the Commission said in a statement. The tendering process was approved in November to help EU refiners in countries such as Britain and Portugal, who have struggled to secure imports of raw cane sugar due to high world prices.
The tenders were scheduled to run from December 8 until February 15 and from June 6 to July 11. The Commission said that the tenders scheduled for June and July remain in force. In the final tender before the suspension on Thursday, the committee accepted bids to import 40,000 tonnes of raw sugar for refining at a minimum duty of 270.16 euros, taking the total volume approved for import since December to 191,000 tonnes.
EU sugar beet output is set to surge this year, thanks to generally favourable weather conditions. The Commission predicts that a production surplus this marketing year will result in ending stocks of 1.9 million tonnes of quota sugar, referring to sweetener produced within national production quotas, and 950,000 tonnes of "out-of-quota" sugar.
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