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USDA Should Increase Sugar TRQ, Says Sweetener Users Association

The Sweetener Users Association (SUA) urged the Agriculture Department to increase the tariff rate quota (TRQ) for sugar soon, noting that the first day the USDA can make such changes was April 1. The March 28, 2012, letter from SUA to Michael Scuse, acting under secretary for Farm and Foreign Agricultural Services at the USDA, said the U.S. market needs additional supplies of sugar and a TRQ increase is the only way to provide supplies at reasonable prices. The USDA must consider a disappointing season of Mexican production and imports as well as strong demand for sugar in the U.S., it said. While helpful and appropriate, a TRQ reallocation alone would be insufficient to deal with the supply problems and to mini maze shortfalls the USDA shouldn't lowball its TRQ increase, the SUA said. One market analyst said additional imports of 728,000-961,000 short tons, raw value, will be necessary, said the SUA.