WASHINGTON — The U.S. Department of Agriculture said late Aug. 15 it intends to purchase sugar under the Feedstock Flexibility Program (F.F.P.) in a continued effort to reduce the current domestic sugar oversupply.

The U.S.D.A.’s Farm Service Agency said invitations were extended to solicit bids to the Commodity Credit Corp. for an unspecified amount of refined beet sugar and raw cane sugar through the F.F.P. The sugar purchased by the C.C.C. under the F.F.P. will be sold on a competitive basis to bioenergy producers with the restricted purpose of producing biofuel. The offered sugar must be pledged as collateral for C.C.C. loans with a maturity date of Aug. 31, 2013, and the amount accepted from any processor will not exceed the processor’s outstanding loan quantity, the U.S.D.A. said. Processors must redeem the loan quantity the same day a contract is awarded.

Offers to the C.C.C., which are due at 1:30 p.m. Central Time, Aug. 21, will be analyzed on a bulk, instore basis for each location, in conjunction with corresponding offers from bioenergy producers to purchase sugar from the C.C.C. The U.S.D.A. will issue a catalog listing all offered quantities by 6:30 p.m. Central Time, Aug. 21. Quantities offered may be reduced (but not increased) up until price offers are due, the U.S.D.A. said. Price offers are due by 1:30 p.m. Central Time, Aug. 28, and successful offerors will be notified by 1:30 p.m. Central Time, Aug. 29.

It’s the U.S.D.A.’s third tender, but the first under the F.F.P., for sugar in the past two months. In the first tender in July the U.S.D.A. bought 91,238 tonnes of refined beet and raw cane sugar that were exchanged for 299,153 tonnes of refined sugar re-export credits and Certificates of Quota Eligibility. In a second July tender the U.S.D.A. purchased 15,504 tonnes of raw cane sugar that was exchanged for 46,559 tonnes of re-export credits.

The U.S.D.A. is seeking to remove sugar from the market to avoid forfeitures against government loans taken by sugar processors.