Raw Sugar Lowest Since 1930s

Press, Volume CVI, Issue 31087, 16 June 1966, Page 3

Raw Sugar Lowest Since 1930s

(N.Z. Press Association)

WELLINGTON, June 15. The world price of sugar has fallen to £l6 15s a ton, according to a cable message from Brisbane, but the retail price in New Zealand is not likely to be reduced.

Mr K. L. Press, assistantsecretary of Overseas Trade, said today that the price New Zealand paid for raw sugar was not the only element taken into accounting in fixing the retail price. “The cost of processing, which remains fairly stable, has to be included.”

The present retail price of sugar in New Zealand is lOd a pound. The Brisbane message said £l6 15s a ton—the lowest price for raw sugar since the depression years in the 19305. Sugar has slowly fallen in price since the turn of the boom in November, 1963, when world prices soared to a record post-war level of £lO5 a ton. Lack of demand and the recent sale of a large parcel of sugar by Brazil from very substantial surplus stock are blamed for the latest drop in world prices. An Australian sugar-mar-keting official said tonight that there seemed to be no end in sight to the present gloomy situation. The chairman of the Queensland Sugar Board (Mr O. Wolfensberger) said another conference would be held in London next week between world exporters and importers. This conference would explore the prospects of an interim international agreement, the main object of which would be to raise the

present low world market prices. Mr Press said that New Zealand, as a member of the Commonwealth Sugar Agreement, imported about 125,000 >

tons of sugar a year, most of it from Australia and Fiji. New Zealand paid the ruling world price, plus £3 15s a ton because of the Commonwealth preference.

“The world price for sugar is fluctuating all the time and the retail price in New Zealand is reviewed from time to time,” he said.