EC SUGAR TENDER SEEN AS CONCESSION TO PRODUCERS

  The rebate granted at yesterday's EC
  sugar tender represents some concession to producers'
  complaints that they are losing money on exports outside the
  bloc, EC Commission officials said.
      The maximum rebate of 44.819 European currency units (Ecus)
  per 100 kilos was 1.3 Ecus below what producers say is needed
  to obtain the equivalent price to that offered for sales into
  intervention.
      The rebate at last week's tender was 2.5 Ecus per 100 kilos
  short of the level producers said was needed, the officials
  said.
      The officials said the Commission is not negotiating with
  producers who have offered a total of 854,000 tonnes of sugar
  for sale into intervention in an apparent attempt to persuade
  it to offer higher rebates.
      They said the French and German producers involved are now
  unable to withdraw this offer before April 1 when the sugar
  will officially enter intervention stores.
      Payment for it is due five weeks later, and it will be open
  to them to withdraw their offers at any time between April 1
  and the official payment date when the Commission officially
  takes ownership of the sugar, the officials said.
      The officials said if the Commission has to buy the sugar,
  it is determined to immediately resell it, a move which would
  drive down market prices further.
      They expressed some hope that the operators would not
  eventually go through with their plan for intervention sales.
      "We think they realise they have gone too far," one official
  said.
  

