Sugar Imports to Rise

USDA will raise the low-duty quota on imported raw sugar by 420,000 tons and may increase the quota again in June.  In a Federal Register Notice, USDA specifies that the tariff rate quota (TRQ) will rise from 1.23 million to 1.65 million tons.  To explain the multiple-step analysis, USDA pointed to “significant uncertainties about FY 2012 Mexican imports, domestic refined and raw sugar demand, the early sugar beet crop, and other markets factors” as reasons it was not prudent for USDA to increase the import supplies further at this time.

The Sweetener Users Association, representing food and candy manufacturers, estimated as much as 961,000 tons of additional sugar would be needed to push ending stocks into the range of 13.5 percent to 15.5 percent, the range traditionally considered adequate.

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