WEALTH IN SUGAR.

Hokitika Guardian, 27 January 1925, Page 1

WEALTH IN SUGAR.

AUSTRALIA’S RECORD CROP. SYDNEY, January 15. It js estimated that Australia’s sugar crop for the current season will total about 417,500 tons, which, at a- rough estimate, is worth £11,250,000. Of this huge yield, which constitutes a record for Australia, 386,000 tons conies from Queensland, and 28,000 tons from the northern areas of New South Wales—all of which is derived from cane—while the yield from Victoria’s recently established beet sugar factory is expected to l>e 3500 tons It is estimated that since 1920 the area under cane lias increased by GO,OOO acres—and therein lies an acute economic problem for the Commonwealth. It costs a great deal more to produce Australia’s white

grown sugar than it does to produce the “ black ” sugar of Java and other countries in which labour is plentiful. As far ns the Australian market i.s concerned, it enjoys absolute protection in the shape of an embargo on imports, which the Federal Government has decided to continue for some years, but, at the high price obtained by the protected industry—the curernt price is £27 a ton—it pays well to grow sugar cnn,e and the area keeps on increasing. But- with the increasing area there is an increasing surplus over Australian requirements, and once the products of

White Australia, leave the Commonwealth they have to compete against the black grown, and consequently much cheaper, sugar from other countries. The position hitherto has been met by making the price received in Australia contribute towards the loss on that which lias to lie exported. But the larger this export surplus becomes, the heavier becomes the loss which must he recovered from the amount received from the Australian consumer, and the question therefore arises as to whether action should he taken to restrict the additional areas that may he put under sugar—which would mean making the existing areas a close and profitable preserve for those already engaged in the industry. The problem presents much scope for statesmen to cogitate over and politicians to wrangle about.