EC SUGAR TENDER SEEN AS CONCESSION TO PRODUCERS
The rebate granted at yesterday's EC
sugar tender represents some concession to producers'
complaints that they are losing money on exports outside the
bloc, EC Commission officials said.
    The maximum rebate of 44.819 European currency units (Ecus)
per 100 kilos was 1.3 Ecus below what producers say is needed
to obtain the equivalent price to that offered for sales into
intervention.
    The rebate at last week's tender was 2.5 Ecus per 100 kilos
short of the level producers said was needed, the officials
said.
    The officials said the Commission is not negotiating with
producers who have offered a total of 854,000 tonnes of sugar
for sale into intervention in an apparent attempt to persuade
it to offer higher rebates.
    They said the French and German producers involved are now
unable to withdraw this offer before April 1 when the sugar
will officially enter intervention stores.
    Payment for it is due five weeks later, and it will be open
to them to withdraw their offers at any time between April 1
and the official payment date when the Commission officially
takes ownership of the sugar, the officials said.
    The officials said if the Commission has to buy the sugar,
it is determined to immediately resell it, a move which would
drive down market prices further.
    They expressed some hope that the operators would not
eventually go through with their plan for intervention sales.
    "We think they realise they have gone too far," one official
said.
 REUTER
