US Increases 325,000 Tons of Sugar Import Quota in 2011

Kunming Sugar Network News April 12th, Dow Jones News from New York City, the U.S. government decided on the current sugar production year to domestic sugar producers on Monday because the end of last year and the cold weather at the beginning of this year attacked Florida's sugarcane growth to reduce sugar production. Issued 325,000 tons of sugar import quota.

Every year, the United States needs to import sugar to meet domestic demand. However, to protect the interests of domestic sugar companies, the United States Department of Agriculture (USDA) provides for low-tariff or duty-free imports of sugar.

The amount of imports will compensate to a certain extent the losses caused by the Florida frozen disaster during the period from January to March 2011.

According to the regulations of the U.S. Department of Agriculture and the WTO, the U.S. can import a minimum amount of 1,231,497 tons of sugar each year, and then consider whether or not to increase the quota based on the actual domestic supply and demand situation. And before April 1st this year, the Congress allowed the Ministry of Agriculture to increase import quotas. Last year, due to tight supply, the United States increased import quotas twice.

With the continuous increase in production costs, people in the industry hope that the government can increase quotas. This will further increase the market supply, and it is estimated to ensure market demand.

According to the USDA, the price of US raw sugar futures has been hovering around 20 cents/lb between 1989 and 2009. However, due to the increase in global raw sugar prices in 2010, the US sugar price also rose. As a result, U.S. sugar companies also raised prices.

Some people in the industry have suggested that the government should ease its import quota policy so that it can buy cheap sugar in the international market.

Many legislators also proposed amendments to the sugar quota system. Recently, Sen. Richard Sugar Group announced the “2011 Sugar Free Trade Proposal” in the hope of supporting the food manufacturing industry (including Kraft Foods Group).

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