U.S. companies that use sugar as an ingredient, including many dairy companies, employ almost 600,000 people nationwide. These companies depend on a stable and adequate sugar supply to make their products.
Due to an ongoing domestic sugar shortage, IDFA and other members of the Sweetener Users Association have asked USDA to make additional sugar available in the form needed for end users through increases in the tariff-rate quotas (TRQs) for refined and raw sugar. Members of Congress have supported this request via separate House and Senate letters to USDA.
On April 1, 2020, the Department announced that it would increase the raw cane TRQ by 317,515 metric tons and the refined sugar TRQ by 181,437 metric tons. A notice to this effect will be published in the Federal Register on Friday, April 3.
The notice also states that “USDA will closely monitor stocks, consumption, imports and all sugar market and program variables on an ongoing basis and may make further program adjustments during FY 2020 if needed.”
UPDATED: On April 9, the Office of U.S. Trade Representative published a notice in the Federal Register indicating how additional Fiscal Year (FY) 2020 in-quota quantities of the tariff-rate quotas (TRQ) for imported raw cane and refined sugars will be allocated. These additional in-quota quantities were announced by USDA Secretary Perdue on April 3rd but USTR has the authority to determine which countries receive TRQ allocations. As detailed in this Federal Register notice, the raw sugar TRQ increase is divided proportionately among 26 countries, and the refined sugar TRQ increase will be in 7 tranches beginning with the first tranche of 95,000 metric tons on April 13.
Please contact Dave Carlin (firstname.lastname@example.org) if you have any questions regarding this information.