sugar_faq.pdf

Frequently Asked Questions

June 25, 2013

1. Question: Will a processor who offers sugar at a higher polarity than the 96 degrees specified in the invitation receive the same polarity premium as would be obtained through loan forfeiture?

USDA’s Response: As per the amended Invitation, the holders of RSRP credits and CQEs will be strongly encouraged to contact warehouse operators in advance of offering to discuss the quality of sugar to be delivered, a delivery schedule, and to prearrange a schedule for premiums and discounts.

2. Question: With a minimum offer quantity of 5,000 MT, does that have to be in one physical location or can it be in multiple warehouses in different locations?

USDA’s Response: Each processor must offer a minimum of 5,000 MT, and this may be cumulative from multiple warehouse locations.

3. Question: Does the sugar offered have to be under loan?

USDA’s Response: Sugar offered does not necessarily have to be under loan, but processors cannot offer more than their aggregate amounts under loan.

4. Question: When will CCC make payment if offer is accepted?

USDA’s Response: CCC will initiate the electronic payment process as soon as possible on the day the offer is accepted.

5. Question: If we offer to sell packages rather than bulk, could we be forced to ship bulk even though we offered packages?

USDA’s Response: Although this invitation is for bulk sugar, packaged stocks (totes, bags, etc.) may be used to cover the delivery obligation.

6. Question: Can we offer powdered or brown sugar?

USDA’s Response: Only raw cane or refined beet sugar is eligible.

7. Question: What happens if a successful exchange offeror refuses to accept a bid award?

USDA’s Response: A binding contract is formed when the government accepts the bid, and CCC will follow through with the exchange.

8. Question: If a domestic producer offers, does it count against their marketing allotment?

USDA’s Response: Accepted offers count against the processor’s marketing allotment.

9. Question: When will the terms for the exchange Invitation be published?

USDA’s Response: The sugar catalog will be posted on Tuesday, July 2, 2013, at which time the exchange Invitations will also be issued.

PLEASE NOTE: This document will be periodically updated.