SUGAR SUPPLIES.

Otago Daily Times, Issue 18894, 21 June 1923, Page 11

SUGAR SUPPLIES.

OFFICIAL STATEMENT. Tho Secretary of the Board of Trade has forwarded us a communication, from which wo make the following extracts, with reference to the question of sugar supplies; — “Throughout the period of Government control New Zealand has enjoyed a per capita consumption exceeding that of any other country in the world. In regard to tho present apparent shortage, it be noted that during the jam season just passed—November to March—4ooo tons more sugar were delivered than during a similar period in the previous year. The quantity delivered last jam season has never been exceeded in the history of the dominion, and the heavy demand has shown no abatement since March, when normally there is a decided slackening off in orders. At the beginning of the jam season there is always a reserve stock of refined sugar at Chelsea that has accumulated during tho slack period of tho year, but these reserves were distributed during the past jam season. Consequently current deliveries must he effected from the current meltings, thus necessitating a certain measure of restriction.

“That the quantity arranged for is fully adequate is evidenced by the fact that there are available for distribution between April and August of this year, when the Government will relinquish control, 24,500 tons ,of sugar. Last year, for a similar period, 19,857 tons were delivered, and the year prior to that 16,458 tons, so that it is fairly evident that reasonable provision had been made to meet normal requirements. Even allowing that tho general financial position during tho years just mentioned might have been a, retarding influence on consumption, it should bo noted that tho consumption for pre-war years, when conditions were normal, was for 1913 20,006 tons, and 1914 20,716 tons. It cannot thus ho reasonably contended that in making a provision of 24,500 tons tho Government had not taken ail reasonable precautions to meet the anticipated requirements of the dominion. “In regard to the matter of price, from ISI4 to 1919 the terms arranged with the Colonial Sugar Refining Co. (Ltd.) wore exceptionally advantageous to the consumers of the dominion. In 1919, it should bo remembered, Java sugar was actually purchased in New Zealand up to £96 a ton, and was quoted up to £lO2 per ton, whereas the highest price, (luring the whole period of control for colonial 1A sugar was £47 a ton. In 1920, the only period in which it was necessary to ration sugar in the dominion, Java sugar was retailed in Dunedin at 9d per lb, as compared with tho maximum retail price of 6j>d per lb for 1A sugar. The contracts with tho Sugar Company, subsequent to the one effected in 1919, have sll resulted in tho Government being able to fix the retail prices considerably below those obtaining in other parts of the world, and to-day the maximum retail price of 4d per lb is still below the price at which sugar is retailed elsewhere. “It has been alleged that the Government made a bad contract with tho Colonial Sugar Refining Co. (LtdJ, but in every contract made with the company the price has averaged considerably below world parity. “The present panic demand is quite unreasonable. The latest market reports show that there is no warrant for the fear that a rise is imminent. Cabled reports for th© past few weeks have indicated a receding tendency, and a London cablegram received today stares that the sugar market is quieter and prices lower. The Java market is weaker, whites being offered freely for shipmerit in June and July at 28s 9d per cwt, c.i.f., London. This represents a decline of £5 5s a ton since April. “The latest available statistics, as disclosed by Willett and Gray’s estimates to March, 1923, show a slight increase in tho world production for 1922-23, as compared with last year.” The comparative figures are as follow: 1920- 16,767,920 tons. 1921- '... 17,654,699 tons. 1923 17,962,325 tons.