Source: POLITICO'S MORNING AGRICULTURE, 4/2/20

The department will soon publish a notice in the Federal Register raising the fiscal 2020 tariff-rate quota for raw cane sugar to 1.43 million metric tons, while nearly doubling the low-duty quota for refined sugar to more than 373,000, reports Pro Trade’s Doug Palmer.

Ted McKinney, USDA undersecretary for trade and foreign ag, said the actions are based on the “determination that additional supplies of raw cane and refined sugar are required in the U.S. market.” McKinney said further adjustments for fiscal 2020 are possible.

— Poor weather has hampered production in Louisiana, a key sugar cane-growing state, and led to one of the worst sugar beet harvests in decades in states like Minnesota and North Dakota. Mexico, one of the top U.S. suppliers of sugar, has faced its own production problems.

— USDA lowered its sugar production forecast in March to just over 8 million short tons this year — a 127,000 decrease from its February forecast, and nearly 1 million tons less than last year’s crop.

How it works: USDA typically sets the annual sugar quotas at the lowest level allowed under World Trade Organization commitments, since tight import restrictions that support prices are critical to operating the federal sugar program. USTR will soon announce how the quota increases will be divided among eligible sugar-producing countries.