Sugar Price Stabilization Fund – FEPA

"It is an instrument of Colombia’s agricultural policy, established under Law 101 of 1994 and organized for the sugar sector through Decree 569 of 2000. The objectives defined by law for this type of fund are: to ensure fair income for producers, regulate domestic production, and increase exports. The fund operates through two stabilization mechanisms: contributions, which occur when the selling price in a given market exceeds the reference price; and compensations, which apply when the market price is below the reference price. It operates as a zero-balance fund, meaning that all income from contributions is used to finance compensation, with the exception of operational costs.