Sugar beet growers face increased import competition

Sugar beet growers will face increased competition from imports with the existing tariff-free quota set to be expanded from the start of next year.

The government confirmed its plans to expand the quota as part of the autumn Budget on 26 November, following an industry consultation earlier in the year.

A new autonomous tariff quota (ATQ) of up to 325,000t/year will be introduced from January 2026, up from the existing threshold of 260,000t.

See also: Growers squeezed as EU sugar markets come under pressure

Meanwhile, the UK global tariff (UKGT) rate for refined raw cane sugar above the threshold will remain at £280/t.

The government, however, has indicated that this amount is still subject to any future review that it may decide to hold.

A consultation by the Department for Business and Trade received 31 responses from industry stakeholders.

Feedback found that 14 respondents wanted an increase in the ATQ volume, arguing it would support the UK raw cane refining industry and provide a greater choice in sourcing raw cane sugar from global suppliers.

However, 12 of the responses from stakeholders called for a reduction or removal of the quota.

Four supported maintaining the existing quota, and one abstained.

Opponents of the quota argued it disadvantaged UK sugar beet growers by allowing imports from countries with lower standards.

They also said it was unnecessary due to an oversupplied sugar market and conflicted with wider government health objectives.

Quota opposition

The NFU remains opposed to the quota and has called the decision to expand it extremely disappointing.

NFU Sugar Board chairman Kit Papworth said: “We continue to consider a zero-tariff quota for raw cane sugar highly concerning, unjustified, and unnecessary.

“British sugar beet growers are among the most efficient in the world, but allowing tariff-free access to sugar from any country, produced in ways that would be illegal in the UK, simply undercuts them.

“We commended the government for its approach to negotiations with India on sugar market access and the decision, ultimately, not to grant any concessions to a country whose sugar subsidy regime had been found in breach of world trade law.

“But the decision to expand and extend the ATQ for raw cane sugar of any origin, regardless of method of production or the agricultural policy regime under which it has been produced, is even more concerning.”