WASHINGTON, July 11, 2013 â€“ The Commodity Credit Corporation (CCC)Â announcedÂ the results of actions taken on June 17 and June 25, 2013, to reduce the domestic sugar oversupply and reduce the cost of the CCC Sugar Loan Program. The CCC has reduced the oversupply and the likelihood of sugar loan forfeiture to CCC by nearly 300,000 metric tons by retiring credits under theÂ Refined SugarÂ Re-export Program and Certificates of Quota Eligibility under the United States-Colombia Trade Promotion Agreement. This action cost CCC $43.8 million, but averted an expected $110.7 million in loan forfeiture costs, thus saving an estimated $66.9 million.
CCC used the $43.8 million to purchase 91,238 metric tons of sugar under the Cost Reduction Options of the 1985 farm bill, which authorizes CCC to purchase surplus program crops if the purchase results in expected program savings. The purchased sugar was exchanged for sugar import access generated by the Refined Sugar Re-export Program or included in the United States-Colombia Trade Promotion Agreement at an average ratio of 3.3 tons of import access per ton of CCC sugar. Additional information on this action can be found at:Â www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=pas-sa.
CCC is monitoring the market on an on-going basis and will take action as necessary to reduce the cost of the Sugar Program. Sugar Program costs are expected to increase in 2013 due to record crops in North America and world prices that no longer support U.S. prices at the Sugar Program support level.