PRICE OF SUGAR

New Zealand Times, Volume XLIX, Issue 11366, 13 November 1922, Page 2

PRICE OF SUGAR

FOR THE JAM SEASON. BIG SAVINGS CLAIMED. A report issued by the Board of Trade, or Department of Industries and Commerce. reviews the various transactions of the Government in regard to stabilising the price ,of sugar, since the Government first purchased the 1920 supply of raw sugar at -£SS 10s ner ton and bore the 1 cost of refining and, distribution. For the 1921 supply the Government bought 50,000 tons in all at .£22 12s 6d per ton, which anabled wholesale price of refined sugar to be fixed at .£34 per ton f.o.b. Auckland, and the retail price at 4Jd a pound. Towards the end of the year a further 12,000 tons was bought, at £ls 10s per ton, raw, f.o.b. Fiji, enabling the Government to reduce the wholesale price of A 1 sugar to- £26 5s a ton, and make the retail "rice ,3Jd a pound. The Government intended, after distributing the sugar purchased under these contracts, to step out of the sugar business, but before doing so inquiries were made from the Sugar Company to ascertain whether a supply of sugai for the coming jam season could be assured. The company advised that the world's, market 'conditions were so unsettled that an extension of the arrangement would be more satisfactory; and as the Government was not desirous of seeing the New Zealand supply depleted, it negotiated with the Sugar Company for a quantity calculated to last until the end of the present jam season. A contract for 20,000 tops nt £l9 12s 6d per ton, raw._f,o.b. Fiji, was entered into, This quantity was designedly limited by the Government, as it was not considered prudent to buy the full quantity forward under the then existing market conditions. Before making other arrangements for the disposal of t'he balance of the crop the Colonial Sugar Refining Company later offered it to the Government. The Government carefully considered the position both in regard to the prospective supply and the market conditions, and recently agreed to purchase an additional 20,000 tons at £l7 3s 8d per ton f.o.b. Fiji. This price, will enable tho present maximum of 3jd to be maintained for the coming jam season, and the supply will be sufficient to meet the Dominions needs until June 30th, 1923. -The Board of Trade estimates that tho total savings to the people of New Zealand under the Government’s fixing of sugar prices amount to £5,350,000. Tables of prices and consumption show that New Zealand had the highest prewar and post-war consumption of 1291 b per 'head. Australia coming next with 1281 b. Other post-war figures are: United Kingdonj 521 b, United ‘States 731 b, France 38Tb Germany 401 b. India 171 b. Excent in 1920, the New Zealand price has always been lowey than the Australian. and much, lower than the British.