News International Sugar Journal

US likely to purchase sugar in the domestic market to prevent default by sugar processors [Registered]

The fall in sugar prices in US is likely to spur the Department of Agriculture into purchasing 400,000 tons of sugar in the local market to prop up prices in order to pre-empt defaults by sugar processors who borrowed $862 million under the government’s non-recourse loans or price support programme, the Wall Street Journal reported. Names or number of companies who received loans have not been revealed. Sugar prices in the US have been trading at about 20 cents a pound, which are lowest in nearly four years, putting sugar processors at risk of defaulting on loans they received from…

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