EU Sugar Management Committee approves a "preventive withdrawal" of two million tonnes for the sugar year 2007-2008.

The European Commission today indicated that it expects to have to withdraw two million tonnes of sugar from the European market in October 2007 under Article 19 of Regulation 318/2006. However, the emergency powers in Article 42 of 318/2006 have been used to derogate from Article 19 for enterprises which reduce their plantings by 13.5 percent, and member States where there has been participation in the voluntary restructuring scheme. Other considerations were raised by member states, but these were deemed to be 'non-urgent', including the impact of the withdrawal on the cane refining sector and the possible consequent impact on the EU's international trade commitments.

The Commission is expected to make proposals to Agriculture Council for changes to the Council regulations in April. These proposals are expected to cover amendments to the operation of the restructuring scheme, and amendments to Article 19 which may change the basis for future quota cuts.