USDA Tuesday announced an increase to the fiscal year 2016 Overall Allotment Quantity for domestic sugar. The move comes as sugar beet growers in the U.S. are expected to grow a record crop, despite a push against genetically modified sugar beets, bringing uncertainty to the sugar market. USDA charges the uncertainty is in part due to inaction on GMO labeling legislation and a lack of consumer information about genetic technology. As part of the announcement, USDA also reassigned some of the projected surplus sugar marketing allotments among processors and reallocated part of the surplus cane sugar marketing allotment to raw cane sugar imports. As per U.S. sugar policy, each year, USDA forecasts’ U.S. sugar consumption and decides whether to limit the amount that U.S. producers can market. At the same time, USDA allocates market share to 41 foreign countries based on U.S. import commitments in trade agreements. USDA has reassigned 500,000 short tons raw value of cane sector domestic supply shortfall to imports. The overall fiscal 2016 U.S. raw sugar tariff-rate quota is now 1.3 million short tons raw value.
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