NFU Sugar has harshly criticized the government’s decision to extend and extend tariff-free access to raw cane sugar, warning that the move threatens the future of the domestic sugar beet sector and gives an advantage to overseas producers operating to weaker standards.
On November 26, the government confirmed that the voluntary tariff quota (ATQ) for raw sugarcane will increase by 25% to 65,000 tonnes, allowing 325,000 tonnes to be imported into the UK duty-free every year from January 2026 to the end of 2033.
ATQ is a system that allows a certain amount of imported goods to be imported into the country with zero or reduced tariffs. In this case, the raw material, cane sugar, is mainly used for refining in the UK, which may change the balance between imported sugar and domestically produced sugar.
Kit Papworth, chair of the NFU Sugar Committee, called the decision “deeply worrying, unwarranted and unnecessary”. He argued that UK producers, already operating under “increasingly strict regulations and fewer and fewer plant protection tools”, could not be expected to compete with sugar produced overseas in a way that “would be illegal in the UK”.
The union has opposed the ATQ since its introduction in 2020, warning it would undermine fair competition. The report says the system, which allows sugar produced under far more lenient environmental, labor or chemical use rules to be imported into the UK duty-free, puts British producers at a structural disadvantage and threatens the long-term viability of the crop, at a time when margins are already under pressure from cost, pest pressures and changes in support.
The long duration of assignments is a particular source of frustration. NFU Sugar raised concerns about the impact of a multi-year ATQ during the 2025 consultation, but said the government was moving ahead with the agreement until 2033, adding further uncertainty for producers planning future rotations and investments.
The union also highlighted what it saw as a contradiction in government policy, arguing that it is incompatible to protect the interests of producers through free trade agreement negotiations while at the same time weakening them through unilateral tariff decisions. We continue to promote a consistent collaborative approach that prioritizes a “level playing field in trade.”
NFU Sugar says the government’s initial assessment of the impact of the ATQ was flawed and is calling on ministers to publish analysis to support the decision to widen and extend the quota from 2026.
Mr Papworth said the situation was creating “additional unwelcome uncertainty” for producers. He added: “We applauded the government’s approach to negotiations with India… but the decision to expand and extend the ATQ on cane-based sugar, regardless of origin… is even more worrying.”
“We continue to fundamentally oppose ATQs on raw cane sugar, regardless of their size,” he reiterated.
