Tate & Lyle Sugars is suing the European Commission for a third time - alleging it has caused sugar costs to rocket artificially just as the world price plummets.

Tate & Lyle’s latest £60m complaint, lodged with the European Court of Justice last Saturday, takes its total damages claim to £157m. It relates to the impact of the Commission’s sugar regime on the sugar markets this summer, and follows two earlier complaints relating to 2011.

At issue are the restrictions the EC has imposed on sugar imports. Tate & Lyle and other refiners have had to bid up to £250 a tonne for the right to bring sugar into the EU.

Tate & Lyle claims the system has resulted in higher prices and forced it to cut production, lay off workers and stand by and watch as sugar beet producers in Europe make record profits.

“It is beyond belief that the EC still claims that its management of the EU sugar market has been a success for consumers and competition,” said Tate & Lyle Sugars president Ian Bacon.

Finsbury Foods CEO John Duffy joined in the condemnation of EU sugar rules this week. He said his bakery business has seen its sugar costs increase by double-digit margins over the past year, while world prices fell by over a quarter.

“The perversities of the system have driven the world and EU price further and further apart,” said Duffy. “I don’t know how the European legislators define success, but I can’t see it.”

Tate & Lyle expects the Court of Justice to reach a verdict by early 2014.

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