WASHINGTON – The U.S. Department of Agriculture (USDA) today announced several actions regarding sugar: 1) a reassignment of projected fiscal year (FY) 2020 surplus beet sugar marketing allocations among beet sugar processors, with a consequent reassignment of 750,000 short tons, raw value (STRV) to raw cane sugar imports already anticipated; 2) a reassignment of 550,000 STRV of projected FY 2020 surplus cane sugar allocations to raw cane sugar imports, of which 200,000 STRV is reassigned to raw cane sugar imports already anticipated, and 350,000 STRV (317,515 metric tons, raw value or MTRV) is applied toward an increase in the FY 2020 tariff-rate quota (TRQ) for raw cane sugar; 3) an increase in the FY 2020 refined sugar TRQ of 200,000 STRV (181,437 MTRV); and 4) an increase in the FY 2020 raw sugar TRQ of 350,000 STRV (317,515 MTRV). These actions are effective April 2, 2020. The Federal Register notice announcing these increases is at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-07164.pdf.
These actions are needed to bring additional sugar into the U.S. marketplace to achieve at least a 13.5 percent FY 2020 U.S. sugar ending stocks-to-use ratio. Significant uncertainties regarding the level of FY 2020 imports from Mexico, the effect of coronavirus on domestic refined and raw sugar demand and supply through the end of the fiscal year, and other market factors make it prudent for USDA to increase import access at this time to achieve the target of USDA’s traditional range of sugar ending stocks-to-use of 13.5 to 15.5 percent. USDA will continue to monitor the situation and take actions it considers appropriate.
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