Europe to Restructure Sugar Regime

BRUSSELS - May 7/07 - SNS -- The European Union has proposed revisions to its sugar regime it hopes will make the system more effective and reduce European Union sugar production to sustainable levels.

"The restructuring scheme was a key element of the 2006 reform of the Common Market Organisation for sugar, offering producers who would be uncompetitive at the new lower price a financial incentive to leave the sector," European Union officials said in a press statement.

"Unfortunately, much less quota has been renounced during the first two years of the scheme than anticipated and changes therefore have to be made to make it more attractive.

"The main changes proposed are that the percentage of the aid given to growers and machinery contractors should be fixed at 10%, but growers who renounce quota will get an additional payment, paid retroactively to avoid penalizing those who have already given up their quotas."

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