EC SUGAR TENDER SEEN AS FURTHER CONCESSION
The rebates granted at yesterday's EC
sugar tender represent a further concession to producers'
complaints that they are losing money on exports outside the
bloc, trade sources said.
    They said the maximum rebate of 45.678 European currency
Units (Ecus) per 100 kilos was 0.87 Ecus below what producers
claim is needed to obtain the equivalent price to that offered
for sales into intervention.
    The rebate at last week's tender was 1.3 Ecus short of the
level producers thought necessary and that of the previous week
was 2.5 Ecus below this level.
    But the sources said producers who have offered a total of
854,000 tonnes of sugar into intervention in an apparent
attempt to persuade the Commission to set higher maximum
rebates have given no formal indication to the Commission that
they intend to withdraw these offers.
    The French and German operators involved would be able to
withdraw the offers up to five weeks after April 1 when the
sugar will officially enter intervention stores.
    The five-week period is the normal delay between sugar
going into intervention and payment being made for it.
    EC officials have said that if the Commission has to buy
the sugar, it is determined immediately to resell it, a move
which could drive down market prices further.
 REUTER
