Tate and Lyle Sugars has called for the removal of the "punitive" sugar import duty levied on 30 percent of raw cane sugar coming into the European Union.
Scrapping the so-called CXL import duty would rebalance the playing field in the EU sugar market and secure competition and choice for Europe's consumers, the British cane sugar producer said.
Beet sugar suppliers are adapting to the bloc's decision to scrap production quotas for the sweetener from 2017, but Europe's cane sugar refining sector says it will continue to be hit by a policy that constrains supply and imposes punitive import duties on its raw material.
Speaking from the International Sugar Organisation (ISO) conference in London, Ian Bacon, President of Tate & Lyle Sugars, said: "At the moment, Europe's sugar market is heading for a car crash in 2017.
"As a result of the recent Common Agricultural Policy reform deal, beet and isoglucose will be completely unleashed from legislation, levies and duties. In sharp contrast, cane refiners will remain hamstrung by punitive import duties on the majority of the sugar we can buy."
Gerald Mason, Vice President of EU Affairs and Strategy, said the 98 per tonne CXL duty makes the cane refining sector uncompetitive.
This could lead to an ultimately unsustainable situation for cane refiners and an even more concentrated European sugar market, he said.
"The CXL import duty artificially inflates all European sugar prices," Mason said.
"Removal of the CXL duty will not only create a fairer environment for cane refiners but will also benefit consumers.
"This duty dates back to a time when Europe's agricultural markets were dominated by high intervention prices and vast expenditure on public mountains of food and export subsidies."
