THE PRICE OF SUGAR.

New Zealand Herald, Volume LVIII, Issue 17780, 13 May 1921, Page 5

THE PRICE OF SUGAR.

QUESTION OF NEW CONTRACT.

NEGOTIATIONS IN PROGRESS. BOARD OF TRADE VIEWS. The sugar contract between the Government and the Colonial Sugar Refining Company expires on August 31, and although negotiations have been proceeding for a renewal of the contract for another year, nothing definite has yet been arranged.

The chairman of the Board of Trade, Mr. W. G. McDonald, yesterday stavc-a that it was impossible to say in the meantime what the price for next season's sugar would be, but it was hoped it would be cheaper. Up to the present the Department of Industries and Commerce had been able to accumulate sufficient stocks to supply a normal demand for sugar. This had been done by supplementing the locally-manufactured article with 3000 tons of sugar imported from Australia. In addition, 2000 tons of Java sugar has been imported by private firms. The latter was more costly on an average than either local or Australian sugar. The last mentioned was sold at the fixed price in the Dominion. The price of next season's sugar, savd" Mr. McDonald, would depend upon the price realised for the Cuban crop next January.

The shortage of sugar in New Zealand last year was due largelv to two causes, said Mr. McDonald. The strike at the Chelsea works, extending over five weeks, resulted in all available stocks being absorbed before refining was resumed, and when that strike was settled the shipping trouble prevented the distribution of supplies manufactured in the meantime. But for the cessation of work at Chelsea and the interruption in the normal working of ships the demand for sugar could have been met from the Chelsea Sugar Works. Mr. McDonald said that if the present contract with the Sugar Company was renewed the Board of Trade would have no difficulty in providing ample sugar for the next jam-making season, in addition to providing sufficient to meet normal requirements.