Sweetener Quota

The Sweetener Users Association issued the following statement in reaction to USDA’s announcement of an increase in the raw sugar tariff rate quota (TRQ):

“The Sweetener Users Association commends the U.S. Department of Agriculture for announcing a meaningful increase in the sugar TRQ and for providing guidance to the marketplace on its policy intentions for the remainder of this year.  The increase in the sugar TRQ and the expected reallocation of a portion of the minimum TRQ will be helpful in supplying markets adequately.

“USDA acknowledged that today’s increase is not likely to be the last one needed, and in our view it would have been even more helpful had USDA announced a quantity that would have, by itself, allowed stocks to reach USDA’s target range.  However, SUA is particularly appreciative that USDA stated its stocks target clearly and also announced its intention to increase the TRQ further in June, in a quantity that will allow the stocks target to be reached.  These steps toward greater clarity and transparency in sugar policy are extremely welcome.

“We again commend USDA for acting promptly once the artificial, Congressionally-imposed six-month waiting period on TRQ increases expired.  Today’s actions should be welcomed by market participants as steps toward greater supply adequacy and more objective, transparent policies.”