The European Commission has proposed amendments to the 2006 reform of the Common Market Organisation for sugar, which aims to improve the European sugar sector’s sustainability and competitiveness. The 2006 reform offered financial incentives for less competitive sugar producers to renounce quota or leave the sector through a “restructuring scheme” in which producers received financial incentives to exit the sector. Through the restructuring scheme, the Commission expected six million tonnes of sugar to be renounced, but the actual reduction to date is only 2.2 million tonnes. To achieve further reductions, the Commission plans to amend the restructuring scheme to provide additional incentives to sugar producers, including additional payments to growers and, among other things, adding a withdrawal scheme for 2009 – 2010. The amendments to the 2006 reform could take effect by October 2007.
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