EC SUGAR TENDER SAID TO MARK NO CHANGE IN POLICY
The maximum rebate granted at
yesterday's European Community (EC) sugar tender marked no
change in policy towards producers' complaints that they are
losing money on exports outside the EC, EC commission sources
said.
    They said this was despite the fact that the commission
accepted over 785,000 tonnes of sugar into intervention
yesterday from traders protesting that rebates are being set
too low.
    The maximum rebate at yesterday's tender was 46.864 Ecus
per 100 kilos, up from 45.678 Ecus the previous week.
    London traders said yesterday the rebate was the largest
ever granted. The commission sources said today the increase
was entirely explained by world market conditions. The amount
by which the rebate fell short of what producers claim is
needed to obtain an equivalent price to that for sales into
intervention remained at 0.87 Ecus per 100 kilos, they said.
    Operators offered a total of 854,000 tonnes of sugar into
intervention last month to protest at rebates which they said
were too low. The sources said about 706,470 tonnes of French
sugar and 79,000 tonnes of German sugar had been accepted, the
remainder being rejected as of too low quality.
    The sources noted the operators could withdraw their offers
in the five week period between the acceptance of the sugar and
payment for it.
    They said they saw no sign of planned withdrawals as yet,
adding that they would expect operators to wait another week or
two to review commission policy before making up their minds.
    The sources said the commission felt entitled to offer
rebates at slightly below the level theoretically justifiable
in the light of its 1987/88 farm price package proposal to
reduce guaranteed prices for sugar by two pct from the start of
the new season in July.
 REUTER
