SUGAR SUPPLIES

Southland Times, Issue 18970, 18 June 1923, Page 5

SUGAR SUPPLIES

AN INORDINATE DEMAND EFFECT OF FOOLISH PROPAGANDA (Per United Press A«oci«t>o»). WELLINGTON, June 16. The Department of Industries and Commerce states, in regard to the sugar supply, that the present panic demand, which has been increased largely more or less by “inspired propaganda” through a letter in the Press, is quite unreasonable. The latest market reports show that there is no warrant for any fear that a rise is imminent. The cabled reports for the past few weeks have indicated a receding tendency, and a London cable received to-day states that the sugar market is quieter and prices lower, while the Java market is weaker, white sugar being offered freely for shipment in June and July at 28s 9d per cwt c.i.f., London. This represents a reduction of £5 5s per ton since April. DOMINION’S FORTUNATE POSITION SUGAR BELOW WORLD PARITY. CHRISTCHURCH, June 16. Answering criticism in regard to sugar suplies, a representative of the Board of Trade stated to-day that throughout the period of Government control, New Zealand had enjoyed a per capita consumption excelling that of any other country in the world. In regard to the present apparent shortage, it should be noted that during the jam season just over, from November to March, 4000 tor\s more sugar were delivered than during the similar period in the previous year. Reserves of refined sugar at Chelsea had been distributed, thus necessitating a certain measure of restriction. It had been alleged, states the Board of Trade, that the Government made a bad contract with the Colonial Sugar Company, but in every contract made with the sugar company the price has averaged considerably below the world parity. The present panic demand, increased largely by letters sent to the newspapers, is quite unreasonable. Christchurch grocers questioned on the point said that there was certainly an unaccountably heavy demand for sugar, due probably to the fear of shortage or fear of a rise in price. Customers who usually bought 6lbs were asking for 12Ibs, pleading in some cases that they were making marmalade. When they were refused the extra supply, they told their neighbours, and the result was another anxious customer after sugar. The rush was due to foolish rumours.