USDA Announces FY 2019, FY 2020 Supply Adjustments to Sugar Program

FY 2020 U.S. World Trade Organization (WTO) Raw and Refined Sugar TRQs

USDA is establishing the FY 2020 TRQ for raw cane sugar at 1,231,497 STRV (1,117,195 MTRV), the minimum to which the United States is committed under the WTO Uruguay Round Agreement on Agriculture pursuant to Additional U.S. Note 5 to Chapter 17 of the U.S. Harmonized Tariff Schedule and Section 359k of the Agricultural Adjustment Act of 1938, as amended. USDA published this decision in the Federal Register.

Raw cane sugar under this TRQ must be accompanied by a certificate of quota eligibility. USTR will allocate this TRQ among supplying countries and customs areas.

USDA is establishing the FY 2020 refined sugar TRQ at 211,644 STRV (192,000 MTRV). The total refined sugar TRQ includes the 24,251 STRV (22,000 MTRV) minimum to which the United States is committed under Uruguay Round Agreement on Agriculture, of which 1,825 STRV (1,656 MTRV) is reserved as the minimum specialty sugar amount. Furthermore, 187,393 STRV (170,000 MTRV) is reserved as the additional specialty sugar amount.

Because the specialty sugar TRQ is administered on a first-come, first-served basis, USDA will release it in tranches to allow for orderly marketing throughout the year. The FY 2020 specialty sugar TRQ will be opened in five tranches. The first tranche, totaling 1,825 STRV (1,656 MTRV), will open October 1, 2019. All specialty sugars are eligible for entry under this tranche.

The second, third, fourth and fifth tranches will be reserved for organic sugar and other specialty sugars not currently produced commercially in the United States or reasonably available from domestic sources. The second tranche of 55,116 STRV (50,000 MTRV) will open on October 9, 2019. The third tranche of 55,116 STRV (50,000 MTRV) will open on January 22, 2020. The fourth and fifth tranches, both of 38,581 STRV (35,000 MTRV), will open on April 15, 2020, and July 15, 2020, respectively.

The USTR will allocate the refined sugar TRQ, other than the amount reserved for specialty sugar, among supplying countries, and customs areas.

USDA closely monitors sugar production, stocks, consumption, imports and other variables. Based on these variables, USDA may need to make additional adjustments to imports or domestic marketing allotments to ensure an adequate supply for the domestic market, avoid forfeitures and prevent or correct market disruptions.

DW Montgomery & Company has provided extensive market and contractual expertise within the sugar industry for over 70 years. Our family has now three generations working within the business and has grown to include a large variety of organic and natural ingredients. It is our pleasure to serve you and assist you in your purchasing needs.

All the best,

David Montgomery, Jr., Paul Montgomery, Andrew Montgomery, and David Montgomery III