\u00a0The European Commission plans to propose the suspension of duty-free sugar imports to ease pressure on European producers facing falling prices and increased competition.<\/p>\n
“I will propose a temporary suspension of the sugar inward processing regime to ease pressures on sugar producers,” the European \u200cCommissioner for Agriculture and Food, Christophe Hansen, said on X late on Monday, Jan 26.<\/p>\n
Hansen \u200bdid not disclose when any suspension might begin.<\/p>\n
The inward processing relief (IPR) scheme allows companies to import sugar at zero duty and without limits, provided the sugar is refined or \u200dprocessed into food products and then re-exported outside the European Union, but the announcement drew mixed reactions.<\/p>\n
European sugar beet growers lobby CIBE expressed strong support for suspension of the IPR scheme, saying it would be timely \u2060and necessary.<\/p>\n
“It will provide the right signal and some relief on a very depressed EU \u200dsugar market,” the group said on X.<\/p>\n
Producers have said imports contributed to a supply glut that led EU \u200csugar \u200cprices to slump to their lowest in at least three years.<\/p>\n
But the sugar fermentation industry, sugar refineries and sugar user groups said the fall in prices was because of sugar beet overproduction and called on the Commission not to suspend the IPR scheme.<\/p>\n
“Suspending inward processing relief would \u2060raise production costs for \u2060EU manufacturers, hindering their \u200bability to compete internationally and threatening their ability to remain in global markets,” they said in a joint statement.<\/p>\n
Raw sugar imported into the EU under IPR in the 2024\/25 marketing year rose 19% from the \u200dprevious year to 587,000 metric tons, 95% of which came from Brazil, European Commission data showed.<\/p>\n
The following chart compares monthly Brazilian sugar ore exports bound to the EU from January to November over the last four years, according to DataLiner data.<\/p>\n
Sugar Exports to EU | Jan-Nov | 2022-2025 | WTMT<\/strong>
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