13. 10.90 Official Journal of the European Communities No C 258/9 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 1785/81 on the 
common organization of the markets in the sugar sector 
COM(90) 323 final/2 
(Submitted by the Commission on 3 August 1990) 
(90/C 258/05) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 42 and 
43 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the Community aid schemes aimed at placing 
raw sugar imported on preferential conditions and sugar 
imported for refining, in particular in Portugal, on 
similar terms expire on 30 June 1991; whereas, however, 
the Community stated in its declaration annexed to the 
Final Act of Accession of Portugal on supplies to the 
sugar refining industry in Portugal that it was prepared 
to carry out, before the end of the transitional period, an 
overall examination of the supply situation of the 
refining industry in the Community on the basis of a 
report from the Commission; whereas since the transi­
tional period expires at the end of 1992, in order not to 
anticipate the conclusions of that report, the above-
mentioned arrangements should be continued until the 
end of the 1992/93 marketing year; 
Whereas Article 23 of Regulation (EEC) No 
1785/81 O, as last amended by Regulation (EEC) No 
1068/89 O, lays down, on the one hand, that the system 
of production quotas for sugar is to apply for the 
marketing years 1986/87 to 1990/91 and, on the other 
hand, that the Council is to determine, before 1 January 
1991, the system to be applied from 1 July 1991; 
(') OJ No L 177, 1. 7. 1981, p. 4. 
O OJ No L 114, 27. 4. 1989, p. 1. Whereas the common organization of the markets in the 
sugar sector has been based since the 1986/87 marketing 
year, on the one hand, on the principle of financial 
responsibility of producers for each marketing year for 
losses incurred from the disposal of surpluses of 
Community production under the system of quotas 
related to internal consumption and, on the other hand, 
on a system of price and disposal guarantees differen­
tiated according to production quotas allocated to each 
undertaking; whereas the abovementioned principle and 
system should be renewed for a further period of two 
marketing years from 1991/92 and 1992/93 in order to 
curb the production of the Community, with its great 
technical production capacity, at a time when the world 
sugar market continues to be characterized, despite some 
improvement, by great volatility of prices and by cyclical 
trends; 
Whereas, therefore, on the one hand the medium-term 
outlook for the world market in sugar is not for a 
marked and lasting improvement in the price situation 
but rather a return to very low prices; whereas, on the 
other hand, the absence of an international sugar 
agreement containing binding clauses for all the member 
countries of such an agreement makes it difficult to alter 
unilaterally the price and disposal guarantees conferred 
on Community producers; whereas, furthermore, in the 
current situation, any reduction of guarantees in this 
sector entails the risk of a substantial decrease in areas 
under sugar beet within the quota system to the 
advantage of other agricultural enterprises for which the 
sector is not or is only partly financed by the producers 
themselves; whereas, under these circumstances, the 
basic quantities of sugar and isoglucose should be kept 
unchanged for the two marketing years referred to above 
but appropriate provisions should be laid down to enable 
international commitments entered into by the 
Community concerning sugar, in particular within the 
framework of GATT, to be implemented rapidly; 
Whereas, by reason of the binding system of production 
quotas it has introduced, the common organization of 
the market in sugar has provided for the possibility for 
undertakings to decide in agreement with beet and cane 
No C 258/10 Official Journal of the European Communities 13. 10.90 
producers to carry forward part of their production from 
one marketing year to the next as production of the 
latter year with obligatory storage for 12 months; 
whereas this possibility of carrying forward was basically 
intended to enable those concerned to cope with 
unforeseen developments in production arising from one 
marketing year to the next, without, in the case of C 
sugar produced, necessarily having to export it to third 
countries whatever the world sugar market situation; 
whereas from the 1981/82 marketing year it was laid 
down that C sugar carried forward could henceforth 
qualify for the reimbursement provided for by the 
Community compensation system for storage costs 
during the obligatory storage period; whereas after 
application of this reimbursement for nine marketing 
years, experience shows a very substantial increase in the 
volumes of C sugar carried forward and hence a use of 
the facility for carrying forward which no longer bears 
any resemblance to the idea of carrying forward referred 
to above; 
Whereas, furthermore, the systematic practice of 
carrying forward large volumes may constitute an 
incentive to produce C sugar and a misuse of the quotas; 
whereas under these circumstances there should be a 
return, as far as C sugar carried forward is concerned, to 
the situation which existed from 1968/69 to 1980/81, i.e. 
where during the obligatory storage period, C sugar 
carried forward can no longer qualify for reimbursement 
of storage costs under the Community system of 
compensation of those costs; 
Whereas the impact of this rule should be alleviated as a 
transitional measure by making provision in respect of 
the 1991/92 and 1992/93 marketing years that the reim­
bursement of storage costs should be granted for the first 
six months of the compulsory storage period; 
Whereas production of sugar beet in Italy, because of its 
special situation and given the size of agricultural 
holdings, is still encountering difficulties, even in the 
northern regions, in particular as regards application of 
modern production methods, and for structural reasons 
in the central and southern regions where sugar beet 
growing is essential for regeneration of the particularly 
clayey soils and thus preventing a return to monoculture, 
whereas the Italian Republic should therefore be auth­
orized to grant for a specified period corresponding to 
that of the quota system a national adjustment aid 
confined to cultivation of sugar beet, on a degressive 
basis, having regard to the reduction already attained for 
the 1990/91 marketing year under the authorization to 
grant such an aid provided for in Article 4 (1) and (2) of 
Council Regulation (EEC) No 1254/89 ('); whereas, 
furthermore, the Italian Republic intends to continue 
restructuring the sugar-beet sector and sugar production 
under restructuring plans pursuant to Articles 92 and 94 
of the EEC Treaty; whereas, therefore, it is justifiable to 
authorize Italy to continue, for the marketing years 
1991/92 and 1992/93, adjusting the said aid, notwith­
standing the said Articles, where the aid is linked 
(') OJ No L 126, 9. 5. 1989, p. 1. to a restructuring plan; whereas account should also be 
taken of the situation as regards interest rates in Italy; 
Whereas the transition to application of the provisions of 
this Regulation must take place under the best possible 
conditions; whereas, to that end, certain transitional 
measures may prove necessary; whereas it should be laid 
down that these are to be adopted in accordance with 
the procedure laid down in Article 41 of Regulation 
(EEC) No 1785/81, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1785/81 is hereby amended as 
follows: 
1. In Article 9 (4b) '1987/88 until 1990/91' is replaced 
by '1991/92 until 1992/93'; 
2. In Article 9 (4c) '1988/89 until 1990/91' is replaced 
by'1991/92 until 1992/93'; 
3. Article 23 is replaced by the following: 
'Article 23 
1. Articles 24 to 32 shall apply is respect of the 
marketing years 1991/92 and 1992/93. 
2. For the period referred to in paragraph 1 and 
notwithstanding Article 24 (2) and Article 25, the A 
and B quotas of sugar-producing undertakings and 
isoglucose-producing undertakings shall be those 
which obtained in the 1990/91 marketing year. 
3. For the period referred to in paragraph 1 and 
notwithstanding Article 25 (3a) the basic A and B 
production quantities for sugar and isoglucose 
serving for the allocation of quotas shall be those 
fixed in Article 24 (2). 
4. The Council, acting in accordance with the 
procedure laid down in Article 43 (2) of the Treaty, 
shall determine, before 1 January 1993, the system to 
be applied from 1 July 1993.' 
4. Article 24 (1) is replaced by the following: 
'1. Member States shall, under the conditions of 
this Title, allocate an A quota and a B quota to 
each sugar-producing undertaking and each 
isoglucose-producing undertaking established in 
their territory which had an A quota and a B quota 
during the 1990/91 marketing year.' 
13. 10.90 Official Journal of the European Communities No C 258/11 
5. Article 24 (3), (4) and (5) is replaced by the 
following: 
'3. For the period referred to in Article 23 (1) and 
notwithstanding Article 25 (la), the A quota and the 
B quota of each sugar-producing undertaking and 
each isoglucose-producing undertaking shall be 
equal, respectively, to the A quota and the B quota 
allocated to it for the 1990/91 marketing year.' 
6. Article 24 (7) is deleted, and paragraphs 6 and 8 
become paragraphs 4 and 5 respectively. 
7. The second indent of Article 27 (2) is replaced by 
the following: 
'— and must store the quantity or quantities to be 
carried forward for a period of twelve conse­
cutive months, the starting date of which is to be 
determined. For the period in question the 
storage costs shall not be reimbursed in 
accordance with Article 8 for the C sugar 
carried forward. 
However, for the 1991/92 and 1992/93 
marketing years the storage costs shall be reim­
bursed as a transitional measure in respect of the 
first six months of the compulsory storage 
period for the C sugar that is carried forward.' 
8. In Article 28 (2), the introductory words are 
replaced by the following : 
'2. Before the end of the marketing year 1992/93, 
a cumulative recording shall be compiled for the 
marketing years 1991/92 and 1992/93'. 
9. Article 29 (1) is replaced by the following: 
'1. If it is found, after application of Articles 28 
and 28a to the 1990/91 marketing year, that the 
actual total loss for the said marketing year: 
a) is not fully covered by the proceeds of the 
production levy and, where appropriate, the 
additional levy, the resulting financial burden 
shall be added to the estimated total loss referred 
to in Article 28 (1) (e) for the marketing year 
during which the finding is made. 
b) is less than the proceeds of the production levies 
and, where appropriate, the additional levy, an 
amount equal to the difference shall be deducted 
from the estimated total loss or, as the case may 
be, added to the estimated total loss resulting 
from application of Articles 28 and 28a for the 
marketing year during which the finding is made.' 10. Article 46 is replaced by the following: 
'Article 46 
1. The Italian Republic shall be authorized, 
during the marketing years 1991/92 and 1992/93, to 
grant, under the terms of paragraphs 2 and 3, 
adjustment aid to sugar-beet producers. 
2. The aid referred to in paragraph 1 may be 
granted only in respect of the quantity of sugar 
produced within the limit of the A and B quotas of 
each sugar-producing undertaking. 
For this production, the maximum amount of the aid 
may not: 
a) per 100 kilograms of white sugar, exceed 
23,64 % of the intervention price for white sugar 
fixed in accordance with Article 3 (1) (a) of 
Regulation (EEC) No 1785/81 for the marketing 
year in question; 
and 
b) may not exceed, for: 
— the 1991/92 marketing year, 70 % 
— the 1992/93 marketing year, 60 % 
of the overall financial commitment in ecus already 
authorized for the 1988/89 marketing year. 
3. However, the Italian Republic may adjust the 
aids referred to in paragraph 2 where this is 
necessitated by exceptional requirements connected 
with current plans for restructuring the sugar sector 
in Italy. In applying Articles 92 to 94 of the EEC 
Treaty, the Commission shall assess in particular 
whether such aid is consistent with the restructuring 
plans. 
4. In addition, during the marketing years 
1991/92 and 1992/93, the Italian Republic shall be 
authorized, when the interest rate granted in Italy to 
the most solvent applicant is higher, by 3 % or more, 
than the interest rate used to calculate the reimbur­
sement referred to in Article 8 of Regulation (EEC) 
No 1785/81, to cover the effect of this difference on 
the storage costs by a national aid.' 
11. Article 47 is replaced by the following: 
'Article 47 
Should special measures be necessary for the 
implementation within the framework of this Regu­
lation of international commitments entered into by 
the Community vis-a-vis GATT concerning sugar 
No C 258/12 Official Journal of the European Communities 13. 10.90 
or of the International Sugar Agreement, the 
Council, acting by a qualified majority on a proposal 
from the Commission, shall adopt such measures, 
which may derogate from the provisions of this 
Regulation.' 
12. In Article 48 'until 30 June 1987' is replaced by 'until 
30 June 1992'. Article 2 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
It shall apply from 1 July 1991. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.