NEW SUGAR PRICE

New Zealand Herald, Volume LXXVI, Issue 23481, 19 October 1939, Page 13

NEW SUGAR PRICE

GROCERS PERTURBED UNABLE TO PASS ON RISE JOINT PROTEST TO BE MADE [BY telegraph—OWN CORRESPOXDF.XT] DUNEDIN, "Wednesday Wholesale merchants in Duncdin were notified to-dav by circular from the Colonial Sugar Company, under date October IG, that the cost of sugar to them was to be advanced by £3 16s 6d a ton. The price to be charged by grocers to their customers is, however, to remain unchanged at 4d a lb. Grocers are much perturbed over the position and curiosity is expressed whether the responsibility for the increase rests with the ■ Colonial Sugar Company or the Government. It has been the practice for many years past for the company to advertise in the press of the Dominion any advance or reduction which may be made in its quotations, so that those interested may bo made aware immediately of the' position. On this occasion, however, the notification conies bv circular from Auckland.

The president of the Dunedin Master Grocers' Association, Mr. A. M. Mackay, said to-day that, while his association had no control over wholesale prices, it considered that hardship was being inflicted 011 grocers by requiring them to bear the whole of the increase.

This increase', represents about Jd per lb. It is understood that a combined protest against a restriction being placed 011 them is being forwarded to the Minister of Industries and Commerce, the Hon. D. G. Sullivan, by the grocers of Dunedin, Wellington and Christchurch. They propose to ask to be allowed to sell sugar at -IJd per lb. retail. The Government takes £9 6s Sd duty 011 every ton of sugar sold. Wholesale merchants are also perturbed over the advance. Up to the present they have been allowed to charge commission on the price at which they sell sugar to the retail trade. On the latest advance of £3 16s 6d, however, they are not to be allowed to charge commission. Wholesalers consider this to be a most illogical proceeding.