Written question asked by Lord Greaves (Liberal Democrat), in the House of Lords. It was answered by Lord Bach (Labour) on Thursday, 15 December 2005.

Sugar

Question: What changes, in money and percentage terms, are forecast in the prices paid for cane sugar products imported into the United Kingdom in each of the next four years following the introduction of the reform to the common market organisation for sugar.

Answer: The reformed EU sugar regime will establish a new reference price for imports of raw sugar applicable from 2009–10 onwards, following a transitional period. The 2009–10 reference price of euro 335.2 per tonne compares with the present intervention price of euro 523.7 per tonne, a reduction of 36 per cent. The change from an intervention price to a reference price system is part of the move to a more market based, liberalised regime where prices are fixed less rigidly. The actual price paid for cane sugar products in the reformed regime will be the subject of commercial negotiations between the cane growing country exporters and the EU importers and may result in levels higher than the reference price guide.

Secondary information