Sugar industry employers’ representatives have decried Romania’s failure to publish the sugar quota for the market year 2014-2015 by 1 October 2014. The sugar quota for Romania was subsequently established at 104 688 tonnes for the period 2014-2015 by order of the Minister of Agriculture, in December 2014.
The sugar quota allocated to Romania has, since 2013, been distributed among the four existing sugar refineries on the basis of historical production levels since 2007. The Ministry has opened judicial proceedings against one of the refineries and this has led to gridlock and to the deadline set in the regulation not being met.
According to a study by Agri.eu, the abolition of sugar quotas at the end of the 2016-2017 harvest year will lead to a fall of around 15% in the price of sugar, and to a 4% increase in production. The convergence of direct EU support payments is expected to take place over an extended period. In the short term, the abolition of quotas will create disparities between Romanian refiners and farmers and their competitors in other Member States.
What does Romania risk from this delay? What suggestions does the Commission have as regards the allocation of the sugar quota?
What means does the sugar industry have of preventing any losses accompanying the abolition of quotas?