EU COMMISSION plans to reform the sugar regime will harm the world’s least developed countries, according to a new report from the LDC Sugar Group.

Representing the 19 least developed countries with interests in sugar, the group says increased market access for LDCs under the “everything but arms” initiative will be dwarfed by the impact of proposed 37% price cuts.

It is proposing a more modest price reduction of 20%, phased in over 10 years rather than three.

This would coincide with an expansion of the tariff quota, allowing them to sell 1.62m tonnes of sugar a year, compared with 1.3m tonnes.

“Managed access at remunerative prices generates far more development in the LDCs than unlimited access at uneconomic prices,” said a statement from the group.

It says a period of stability would attract $500m (£265m) in extra investment, generate $513m (£272m) in export earnings and create 145,000 more jobs.

It would also benefit EU sugar beet growers.

Under the commission’s plans, only nine EU countries will have a viable sugar industry post-reform.

But under the LDC Group’s proposal, all but Finland and Italy would survive.

With the World Trade Organisation case now concluded, agriculture commissioner, Mariann Fischer Boel, is expected to issue formal reform proposals in June.

NFU sugar chairman, Mike Blacker, said he was very concerned by recent comments from the commissioner that 37% price cuts were the minimum needed to balance the market.

Oxfam spokesman Louis Belanger also called for more gradual price cuts, to give LDC suppliers time to benefit from lower EU production and increased access.