International sugar market: Minister Seeruttun warns of “dramatic situation” ahead

Speaking at the 103rd Session of the ACP Council of Ministers, held on 25 April 2016 in Dakar, the Minister of Agro-Industry and Food Security, Mahen Seeruttun, pointed out that, in the wake of the expiry on 30 September 2017 of the quota regime, European Union sugar and isoglucose production will henceforth be determined by market conditions, and this is likely to generate great uncertainty on the market situation for the years to come. “Therefore, dramatic falls in the price of sugar, which means much lower earnings for our countries, aggressive competition for market share, a difficult operating environment for the sugar industry, are some of the daunting challenges confronting us,” he cautioned. EU prices are expected to continue on a downward slide as world market prices continue to be depressed at levels that do not cover production costs even among the most competitive sugar producers worldwide, he said. “For our vulnerable sugar industry to survive, it is important to address third countries trade distorting measures so as to maintain a level playing field for sugar exports”, Minister Seeruttun added. “All I can say at this stage, is that we need to stay engaged internally and with the EU to ensure that our interests and the viability of our respective sugar industry are safeguarded under the extreme volatility conditions ahead of us,” said Minister Seeruttun.