European Union Says Incentives Will Encourage Sugar Growers to Cut Output

(Bloomberg) -- Changes to the European Union's system of incentive payments for sugar producers willing to cut output will encourage ``many more'' companies to apply for the payments and renounce production quotas, the EU said.

The changes to the incentives, which began in February 2006, include limiting the amount of the payments that must be reserved for growers, the EU said in a statement sent by e-mail from Brussels. Growers will get a separate payment of 237.50 euros ($323) in 2008-09 for each ton of sugar they stop growing.


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