The U.S. Department of Agriculture is expanding a sugar-export program, aiming to reduce a glut of the sweetener and lift prices on the domestic market, The Wall Street Journal reported.
According to the article, the sugar-export program was designed to keep U.S. refineries operating year-round by allowing them to import duty-free raw sugar when the U.S. harvests are complete and then export an equivalent amount of refined sugar. These imports don’t count toward the duty-free quotas that the U.S. has in place because every ton of raw sugar that is brought in is shipped out in refined form.
In an attempt to boost prices, the USDA is allowing processors to export more, according to a notice published in the Federal Register. A processor can bring in as much as 50,000 metric tons of raw sugar a day, but it can send overseas up to 100,000 tons of refined sugar.