BEGHIN-SAY NOT PLANNING TO WITHDRAW SUGAR

  French sugar producer Beghin-Say is not
  currently planning to withdraw the sugar it has placed into
  intervention, despite the exceptionally high rebate awarded at
  this week's European Community (EC) sugar tender, Beghin-Say
  President Jean-Marc Vernes told Reuters.
      The maximum rebate of 46.864 Ecus per 100 kilos on
  Wednesday was the largest ever granted, according to traders.
      Vernes said he was satisfied the European Commission has
  started to move in the right direction, but said his company
  had no plans to change its decision to put sugar into
  intervention.
      But Vernes said he hoped that in the next few weeks a final
  agreement would be reached with the commission which would
  allow operators to withdraw the sugar from intervention.
      European operators offered 854,000 tonnes of sugar into
  intervention to protest about export rebates which they say are
  too low. Over 785,000 tonnes of this sugar was accepted by the
  commission on Wednesday, according to commission sources.
      Under EC regulations, however, operators have another four
  to five weeks to withdraw the sugar from intervention before
  payment is made for it.
      A total of 706,470 tonnes of French sugar and 79,000 tonnes
  of West German sugar has been accepted into intervention, trade
  sources said here. This amount represents about a third of
  annual EC exports to non-EC countries.
      Beghin-Say declined to specify the amount of sugar it had
  offered into intervention, but said it was below 500,000
  tonnes.
      Producers say they have been losing 2.5 to 3.0 Ecus on
  every 100 kilos exported due to the failure of rebates to fully
  bridge the gap between EC and world prices. Wednesday's rebate
  was 0.87 Ecus short of what producers say is needed to get an
  equivalent price to that for sales into intervention, traders
  said.
      Vernes said operators hope to get a rebate which equates to
  the full intervention price and said Wednesday's tender was a
  step in the right direction.
      Sugar producers here said the volume of sugar authorised
  for export since the begining of the current campaign had been
  inadequate and that more should be exported now to compensate.
      Trade sources said new regulations governing export
  rebates, which are due to be adopted shortly, may smooth the
  path for the commission to award larger export rebates in
  future.
      One source at a leading French sugar house said it seemed
  the commission had understood the protest action and was now
  moving towards adapting the situation accordingly, thereby
  allowing the operators to withdraw their sugar from
  intervention once they got satisfaction.
  

