Poland urges EU to raise cap for sugar production

Poland's farm minister urged the European Union on Friday to raise the bloc's sugar production cap and said the Polish consumer protection body should investigate a recent rise in retail sugar prices. Poland's retail sugar prices have recently doubled to around 6 zlotys ($2.11) per kilogram, prompting opposition parties to step up criticism of the centre-right government over rising living costs driven mainly by global food inflation.
Minister Marek Sawicki said the rise in sugar prices was driven by speculators and panic but that Brussels should increase the cap on sugar production in the 27-nation bloc. "I wouldn't suggest freeing the quota completely as yet, but it's definitely worth considering raising EU sugar production by 15 percent, that is around 2 million tonnes," he told Reuters, adding the bloc was now short of some 4 million tonnes a year.
Sawicki also criticised Poland's Office of Competition and Consumer Protection (UOKiK) for being too slow in launching an investigation into the recent price rise. The agency announced its probe two days ago. "For some time now, I am really surprised by the lack of reaction from UOKiK, because it is not only meant to deal with the market's deregulation but also with consumer protection," he said.
"If the producers' price stands at 2.30-2.40 zlotys for sugar, and at the same time it appears on shops' shelves at above 6 zlotys per kilogram, then it's clear that somebody is making too much profit from this commodity." Poland produces around 1.43 million tonnes of sugar a year and consumes about 1.56 million tonnes, Sawicki added.
"Usually Polish producers export around 250,000-350,000 tonnes, and at the same time some is imported. But there is no data now signalling any significant rise in imports," he said. Polish media have recently been full of alarming reports about rising sugar prices as Poles rush to shops to stock up in anticipation of further increases.
Elsewhere in the EU, sugar prices have also jumped. In Bulgaria, prices have risen 47 percent since the start of January to 2.06 levs ($1.49) a kilogram. Sugar prices hit a 30-year-high at 36.08 cents per pound in February but since then have eased to trade at slightly below 27.50 on Friday.