Washington, D.C. (SUA) — The Sweetener Users Association (SUA) today sent a letter to Acting Under Secretary of Agriculture for Farm and Foreign Agricultural Services Michael Scuse, urging USDA to take immediate action on April 1 to ensure U.S. industry adequate supplies of sugar at reasonable prices by increasing the tariff rate quota (TRQ).
The association wrote:
“We realize that USDA is subject to constraints in the 2008 farm bill, but on April 1 these constraints are no longer effective, and the Department is free to recognize officially what is already widely known: The U.S. market needs substantial additional supplies of sugar, and a TRQ increase is the only way to provide adequate supplies at reasonable prices.
“… The most recent World Agricultural Supply and Demand Estimates project a 9.0% ending stocks-to-use ratio for 2011/12, clearly deficient in light of market needs.
“… USDA’s consideration of a TRQ increase must occur in the context of disappointing Mexican production and exports, as well as continued strong U.S. domestic demand. These factors strongly point to the need for additional supplies.
“… We therefore respectfully submit that (1) while helpful and appropriate, a TRQ reallocation alone would be totally insufficient to provide confidence of adequate supplies, and (2) in order to minimize shortfalls and permit transactions to be carried out efficiently, USDA should not ‘lowball’ its TRQ increase, but attempt to announce a quantity that will fulfill market needs during the balance of this fiscal year.”
To read the full letter, please click here.