CHINA will levy extra tariffs on out-of-quota sugar imports from all origins starting from Aug. 1, the Commerce Ministry said late Monday, just over a year after introducing hefty penalties on top growers including Brazil and Thailand.

In May last year, the government hit major exporting nations with penalties on sugar shipments after years of lobbying by domestic mills. It still exempted 190 smaller producing countries and regions, mostly in Southeast Asia and South America, like in the Philippines and El Salvador.

That list of exempt countries has now been cancelled, the Commerce Ministry said. “Protective measures will be uniformly applied to all out-of-quota sugar imports,” it said.

China allows 1.94 million tons of sugar imports a year at a tariff of 15 percent as part of its commitments to the World Trade Organization. Shipments outside of that allowance — out-of-quota imports — are charged a higher tariff and need special permits.

Pressured by a large global surplus and rising domestic production, Chinese sugar prices have plunged this year, pushing most producers into the red and threatening China’s efforts to support millions of small farmers in the southern region of Guangxi and neighboring Yunnan Province.

Industry officials recently called on the government to “tighten” supplies from international markets. Still, China’s move came as a surprise to most traders, who had not expected a rapid response from the government.

The new tariffs will have limited benefit to the domestic market this year, said Liu Hande, president of Guangdong Zhong-qing Sugar Group.(SD-Agencies)