No Reduction In Sugar Price Yet

Press, Volume CIII, Issue 30535, 2 September 1964, Page 1

No Reduction In Sugar Price Yet

(From Our Own Reporter) WELLINGTON, September 1. The sugar price stabilisation overdraft should be paid off by the end of this month but the price of sugar is not expected to go down until next year.

Stocks bought at the high prices are expected to take three months to sell, according to the Minister of Industries and Commerce (Mr Marshall). In mid-August, the New Zealand Sugar Company’s overdraft with the Bank of New Zealand was more than £600,000.

Mr Marshall said tonight the stabilisation agreement would continue at least until the end of the year. “If the normal purchases of sugar are not made it could take longer to dispose of stocks and, in that case, the anticipated date for the reduction in price would be affected.”

Mr Marshall said he was making a statement on the prospect of a price reduction to correct any impression that there would be a reduction in the next few months. His statement should also help to clarify the position for manufacturers of goods containing sugar, he said. Low Stocks Some of these manufacturers were apparently imposing unnecessary inconvenience on themselves by holding inadequate stocks of sugar in anticipation of a price reduction in the near future. This overdraft, designed to steady the retail price of sugar at Is 3d per lb and guaranteed by the Government, has been reduced in recent months with the decline in the world free market price of sugar.

The United Sugar Terminal Association’s price—the free market price on which New Zealand purchases are based —was £35 10s last Friday. If sugar can be purchased

when the free market price is less than £44 9s a ton the New Zealand retail price can be lOd per lb. Repayment The retail price has been maintained at Is 3d while the overdraft incurred when the free market price rose to more than £BO and £9O a ton is being repaid. Last month, Mr Marshall said that if the world price then prevailing (£39) was maintained, a retail price of no more than lOd per lb would operate when the stabilisation scheme ended.