Nicaragua is able to sell 10,163 metric tons duty free to the EU.
Altogether, the Central America's total export quota adds up to 150,000 tons.
Mario Salaverria, president of the Sugar Association of El Salvador said the decision to sell the sugar was due to "uncertainty about the problem they had with Italy and that delivery times won't allow them to make the most of this access."
Added to the 17 thousand tons that Nicaragua and Honduras can offer are 25,000 from Guatemala, which will be auctioned to buyers from the European Union.
Elnuevodiario.com.ni reports that "Nicaragua and Honduras are offering 42,000 tons of sugar in the electronic auction to be held today for the second time under the framework of the Association Agreement, or AA, between the European Union and Central America, after the first round was unsuccessful. "
Nicaragua and Honduras are allowed to sell 65,000 more metric tons duty-free to the European Union.
The country has given approval for both Nicaragua and Honduras to receive this benefit temporarily, until the trade agreement becomes effective for Guatemala. "The Council of Ministers of Economy and Trade for Central America (Comieco) gave authorization this weekend for each country in the region to be able to make available its quotas at will" reported Nicaraguahoy.info.
The auction to place 17,000 tons with 35 European buyers was annulled because of an inability to meet deadlines.
The information was confirmed by Mario Amador, general manager of the National Committee of Sugar Producers (CNPA). "... The auction in which Nicaragua and Honduras intended to sell about 17 thousand tons to 35 European buyers from 10 business houses set up in different countries, could not be completed because of non compliance with certain technical conditions ...", reported Elnuevodiario.com.ni.
The country won't cede its sugar quota to Nicaragua and Honduras, and it opposes to Guatemala, El Salvador and Panama conceding theirs.
For Costa Rica, Guatemala and El Salvador the Association Agreement with the European Union has not yet entered into force, so they are prevented from offering their sugar in an auction where 35 buyers bid to bring it to market in the old continent.
The sector, which was ready to export 10,000 tonnes of sugar to the European Union, must wait two more months to do so.
Non-acceptance by dairy farmers in El Salvador and Costa Rica of the geographical indicators for Italian cheeses has caused a delay of at least 60 days of the entry into force of the Association Agreement with the EU.
"We were ready to export, but if there is no treaty we will have to send the sugar to another market at a lower price than would have been paid by the Europe" said Julio Arroyo, CEO of the Sugar Association of El Salvador.
The Nicaraguan sugar industry expects that the entry into force of the Association Agreement will allow it export to the EU about 25 thousand tons of raw sugar, from the 60,000 quota for the entire region.
For the moment the quota allocated to country is 21,600 tons per year, with the possibility of growing 550 tons per year, but the sugar industry expects that with the advantage of being one of the first countries to ratify the agreement it will be allowed to increase its quota for the first year of the Association Agreement (AA).
The region has defined the allocation of 150,000 tons of tariff-free sugar quotas granted by the EU.
The largest allocation went to Guatemala with 65,000 metric tons, followed by El Salvador with 24,391 tons, Nicaragua with 21,681 tons, Honduras and Costa Rica with 19,464 tons each.
The quotas have been defined at private company level and are therefore subject to approval by respective governments.