The European Union's executive will propose abolishing sugar quotas and guaranteed minimum prices from 2016, one year after the current quota system ends. Two EU sources told news agency Reuters of the planned move on Friday (2nd September). image expired

The EU hopes to boost sugar beet production and bring down costs within the block, as well as aligning the sector more closely with world markets.

Under proposals due for publication next month, the current quota system, which runs until 2015, will be extended until 30th September 2016. An anonymous source told Reuters this was "to allow for a reasonable period of adjustment for operators in the sector."

An impact assessment conducted by the European Commission showed ending quotas in 2016 would result in a 1.9 percent increase in the EU sugar beet area in 2020, to coincide with an 8.2 percent fall in sugar beet price. Ending quotas is also projected to precipitate a rise in exports and fall in imports of sugar beets.

Agriculture Commissioner Dacian Ciolos has previously mentioned that an end to the current quota system after 2015 was under consideration by the commission. The EC’s proposals are due for publication on 12th October.