Increase In Sugar Quota

The Wall Street Journal reported last week that USDA may be looking to increase the sugar quota by about 24% for this year.  Click here to see the WSJ article by Carolyn Cui and Bill Tomson and Ilan Brat.  The increase would still be less than the one million tons sought by sugar users.  According to the article, "[a] USDA representative said that 'no final decision has been made' about a quota adjustment or any likely timing."  


This comes as analysts predict a sugar shortage by the end of September.  "According to the USDA's latest report, the domestic market will be left with 42 days worth of consumption by the end of September, down from 51 days in the previous year."  According to one analyst, 

Paul Ryberg, president of the International Sugar Trade Coalition, which represents developing-country sugar exporters, expects the USDA to come up with a formal decision shortly.

"Time is running out," he said, "Realistically, they only have about six weeks to decide whether to increase the quota without declaring a shortage." It usually takes weeks for exporters to arrange shipment and cargos to arrive in the U.S.

Posted: 04/19/10