EU: Suger subsidy system stays
European Commission plans to slash the amount of EU support given to the sugar industry have been rebuffed by the European Parliament's agriculture committee, which has voted overwhelmingly to call on Brussels to maintain the existing subsidy system until the year 2006, when it is due to be reviewed. The Commission wants to cut the EU production quota by 115,000 tonnes a year and abolish the reimbursement of storage costs. MEP's said that the changes would be "unjustified and that to introduce these changes for two years and then, (as planned), propose further, drastic changes in 2003, would be hugely disruptive to producers and the processing industry and would not benefit consumers."
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