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 of white sugar to consumers in the United Kingdom over 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 white sugar reference price applicable from 2009–10 onwards, following a transitional period. The 2009–10 reference price of euro 404.4 per tonne compares with the present white sugar intervention price of euro 631.9 per tonne, an overall 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. No forecasts have been made of how these price cuts will translate into the cost of white sugar to consumers.

Secondary information