Council Regulation (EC) No 2038/1999 of 13 September 1999 on the common organisation of the markets in the sugar sector

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Council Regulation (EC) No 2038/1999 of 13 September 1999 on the common organisation of the markets in the sugar sector

EN Official Journal of the European Communities25. 9. 1999 L 252/1

I (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 2038/1999 of 13 September 1999 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,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the Economic and Social Committee (2 ),

Whereas:

(1) Council Regulation (EEC) No 1785/81 of 30 June 1981 on the common organisation of the markets in the sugar sector (3) has been substantially amended several times (4); in the interest of clarity and rationality it should therefore be codified;

(2) the operation and development of the common market in agricultural products must be accompanied by the establishment of a common agricultural policy to include, in particular, a common organisation of the agricultural markets which may take various forms depending on the product concerned; isoglucose and inulin syrup are direct substitutes for liquid sugar obtained from sugar beet or sugar cane; therefore, the markets in sugar, isoglucose and inulin syrup are closely linked; the situation in the Community in respect of sweeteners is characterised by structural surpluses and any Community decision relating to one of these products inevitably has repercussions on the others; it is therefore necessary to have an organisation common to the sugar, isoglucose and inulin syrup sectors which takes appropriate account of production features specific to the various sectors;

(3) to ensure that the necessary guarantees in respect of employment and standards of living are maintained for Community growers of sugar beet and sugar cane, provision should be made for measures to stabilise the market in sugar and for this purpose there should be fixed annually a target price for white sugar and, for the areas having no deficit, an intervention price for white sugar, as well as an intervention price for raw sugar, and, for each of the deficit areas, a derived intervention price for white sugar and, should the need arise, for raw sugar; the above objective could be attained by making provision for buying-in by intervention agencies at the intervention prices; moreover, a compensation system for storage costs for sugar produced both from raw materials of Community origin, including molasses, and preferential sugar could serve the same purpose; these price guarantees given for sugar also benefit sugar syrups, isoglucose and inulin syrup, the prices of which are based on those of sugar;

(4) in order not to interfere with the prices referred to above, intervention agencies may sell sugar only at a price which is higher than the intervention price unless it is to be exported either in the natural state or after processing or is to be used for animal feeding; this rules prevents the disposal of sugar to charitable organisations for use for human consumption in the Community;

provision should therefore be made for such a possibility in the case of individual emergency aid operations assuring the availability of supplies and thus representing at the same time a humanitarian operation; such operations are effective only it rapidly implemented;

provision should therefore be made for the most appropriate provedure to be used in such instances;

(5) it is necesseary that these regulatory measures should provide guarantees which are fair both to manufacturers and to producers of the basic products; it is therefore appropriate to fix for beet, in addition to a basic price, minimum prices for A beet intended for processing into A sugar and a minimum price for B beet intended for (1 ) OJ C 219, 30.7.1999 (2) OJ C 138, 18.5.1999, p. 18.

(3) OJ L 177, 1.7.1981, p. 4. Regulation as last amended by Commission Regulation (EC) No 1148/98 (OJ L 159, 3.6.1998, p. 38).

(4) See Annex III, Part B.

EN Official Journal of the European Communities 25. 9. 1999L 252/2 processing into B sugar which must be observed when sugar manufacturers buy beet; it is also appropriate to provide, in the interests of ensuring a fair balance of rights and duties between agricultural manufacturers and producers, the instruments necessary to this end and, in particular, to establish Community outline provisions governing the contractual relations between buyers and sellers of beet and to provide for adequate measures to achieve this object in respect of sugar cane;

(6) for the sugar beet sector, having regard to the implications, in particular of a general nature, for the operation of the common organisation of the markets in sugar, application of Council Regulation (EC) No 952/97 of 20

May 1997 on producer groups and associations thereof (1) should be postponed for the period during which the production quota arrangements are applied;

(7) the creation...

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