The U.S. Department of Agriculture announced that there will be no increase in the raw sugar tariff-rate quota (TRQ) or the domestic sugarcane or sugar beet processor marketing allotments based on its June review of the U.S. sugar market.
USDA’s June 2012 sugar market forecast indicates a substantial increase in fiscal year (FY) 2012 supply due to higher Mexican imports and larger beet sugar production than expected when the April TRQ was announced. Also, an increase in expected FY 2012 demand has resulted in a required increase in the domestic overall allotment quantity under the Sugar Marketing Allotment Program; however, since domestic processors’ sugar supply is inadequate to fulfill the increased allotment, the additional allotment was reassigned to imports. The reassignment is to imports already anticipated to enter instead of a TRQ increase because the domestic sugar market is currently expected to be adequately supplied for the remainder of FY 2012.
USDA will closely monitor stocks, consumption, imports and all sugar market and program variables on an ongoing basis. Additional adjustments to import TRQs and domestic marketing allotments are possible later in FY 2012 if needed to ensure an adequate sugar supply for the domestic market.
Source: USDA FSAShare