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Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector

EN Official Journal of the European Communities30.6.2001 L 178/1

I (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission (1 ),

Having regard to the opinion of the European Parliament (2 ),

Having regard to the opinion of the Economic and Social Committee (3),

Whereas:

(1) In order to work properly, the common agricultural policy requires a common organisation of the markets in the sugar sector covering, in particular, sugar and isoglucose and insulin syrup, which are liquid substitutes for sugar.

(2) In order to achieve the objectives of the common agricultural policy, and in particular to ensure that Community growers of sugar beet and sugar cane continue to benefit from the necessary guarantees in respect of employment and standards of living, the market in sugar should be stabilised. This objective can be attained by allowing intervention agencies to buy in sugar. For this purpose, an intervention price for white sugar should be fixed for areas having no deficit, as well as an intervention price for raw sugar, and, every year for each of the deficit areas, a derived intervention price for white sugar and, if necessary, for raw sugar. The intervention price must be fixed at a level which will ensure a fair income for sugar-beet and sugar-cane producers while taking account of the interests of consumers. Such price guarantees for sugar also benefit sugar syrups, isoglucose and insulin syrup, the prices of which are based on sugar prices. In view of the financial perspective and the budgetary rules adopted by the European Council in Berlin in March 1999, the support prices in the sugar sector should be fixed for the whole duration of the new arrangements.

(3) The intervention price must be fixed for standard qualities of white sugar and raw sugar which should be defined. Such standard qualities should be average qualities representative of sugar produced in the Community and should be determined on the basis of criteria used by the sugar trade. It must also be possible to review the standard qualities to take account, in particular, of commercial requirements and developments in analysis techniques.

(1) OJ C 29 E, 30.1.2001, p. 315.

(2 ) Opinion delivered on 13 March 2001 (not yet published in the Official Journal).

(3 ) OJ C 116, 20.4.2001, p. 113.

EN Official Journal of the European Communities 30.6.2001L 178/2 (4) The geographical situation of the French overseas departments calls for appropriate measures for the sugar produced in those departments.

(5) So as not to interfere with the prices referred to above, intervention agencies must sell sugar at a price higher than the intervention price unless it is to be exported either without further processing or in the form of processed products, or used as animal feed. One consequence of this rule is that sugar cannot be made available to charitable organisations for use for human consumption in the Community. It should nevertheless be possible to dispose of sugar in this fashion through individual emergency aid operations intended to ensure the availability of supplies and thus representing at the same time a humanitarian operation. Such operations are effective only if rapidly implemented. The most appropriate procedure should therefore be used in such instances.

(6) Like starch products, sugar is a commodity which can be used by the chemical industry for the manufacture of similar products. A harmonious development of the use of such commodities should be ensured. A system of production refunds should be adopted which makes it possible to expand sugar outlets beyond traditional quantities; to that end, it should henceforth be possible to make the products in question available to that industry at a reduced price.

(7) These rules should ensure fair treatment for both manufacturers and producers of the basic products.

In addition to the basic price derived from the intervention price for white sugar, undertakings' receipts from sales of molasses, which can be estimated at EUR 7,61 per 100 kg derived from the price of molasses estimated at EUR 8,21 per 100 kg, as well as the cost incurred in processing and delivering beet to factories, and on the basis of a yield which for the Community can be estimated at 130 kg of white sugar per tonne of standard-quality beet, minimum prices should therefore be fixed for A beet intended for processing into A sugar and for B beet intended for processing into B sugar, to be paid by sugar manufacturers buying beet.

(8) Specific instruments are needed to ensure a fair balance of rights and obligations between manufacturers and growers, in particular standard Community provisions should be laid down to govern the co...

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