PRODUCERS OF SUGAR

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 13

PRODUCERS OF SUGAR

Export Quotas Increased

(Rec. 11 psri.) LONDON, July 21. The 25-nation International Sugar Council tonight announced that export quotas of member countries had been Increased to 100 per cent, of basic export tonnages from the previous figure of 85 per cent. The seventh session of the council, which ended today, also decided that quotas would be further increased to 105 per cent, of basic export tonnages as soon as the prevailing price is confirmed to be. within the range of 3.25 to 3.45 cents a lb. A council spokesman told a press conference that the increase would mean the addition of about 1,250,000 tons to free market supplies. He. said the recent 700,000 ton Cuban sugar sale to the Soviet Union was not part of the Cuban export quota but came wider the “tolerance provisions” of the agreement The council is issuing a full communique tomorrow. The increase in world sugar export quotas Will'"make it easier for Cuba to sell the excess stocks she has on her hands as a result of the United States cuts in Cuban imports. The major share of the extra 1,250.000 tons which can be taken up by importing countries is expected to be supplied by Cuba. The executive director of the Sugar Council, Dr. R. E. Stedman, said its action would ease the Cuban position. , Cuba Still Loser It would not negate the United States action, Cuba would still lose about two cento a lb on the 700,000 tons which America had cut from its imports. “These would have been at the fixed price of about five cents a lb.

The council also took action which should mean that any extra exports which Cuba makes on the free market this year will not necessarily be held against her quota next year. Sugar Council officials explained that neither the 700,000 tons purchased by Russia from Cuba nqr the rumoured 500.000 tons bought by China were part of export quotas. “We are always pleased to see new consumers,” said Dr. Stedman. It was possible that Cuban sugar stocks would be lower at the end of this year than at the beginning.