The U.S.-based Coalition for Sugar Reform pointed to a 12 percent increase in world sugar prices from June to July as another reason for Congress to reform the U.S. sugar trade program this year.
The United Nations Food and Agriculture Organization’s Food Price Index, released last week, reported a global increase of 6 percent for July largely driven by hikes in grain and sugar prices.
“With global sugar prices soaring, the key components of the Depression-era U.S. sugar program — domestic price supports and strict production quotas — have clearly outlived their usefulness,” the coalition said in a statement.
“Put in place to support American sugar farmers by keeping prices artificially high, the U.S. sugar program has proven counterproductive in today's global economy. With world prices well above the domestic support price of 18.75 cents per pound for raw cane sugar, a protective U.S. sugar policy is no longer needed,” the coalition added.
The Coalition for Sugar Reform represents consumer, trade, and commerce groups, manufacturing associations, and food and beverage companies that use sugar — including confectioners, bakers, cereal manufacturers, beverage makers and dairy companies — as well as the trade associations for these industries.