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USDA Announces Increase in Sugar Supply

Feb 06, 2006

Facing a tight domestic sugar market, the U.S. Department of Agriculture (USDA) announced late last week that it would increase the FY 2006 Overall Allotment Quantity (OAQ) by 525,000 short tons, raw value (STRV) to 9,350,000 STRV.

"We're pleased that USDA has acknowledged that more sugar is needed for our domestic market," said Clay Hough, IDFA senior vice president and general counsel. Since beet and cane sugar can only partially supply the increased OAQ, 500,000 STRV of the allocated amount will be assigned to imports. The import increase will be divided equally between the FY 2006 World Trade Organization tariff rate quotas (TRQs) for refined and raw sugar. 

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