§ 39. Mr. J. Morganasked the Parliamentary Secretary to the Ministry of Food the basis for the recent increase in the shopping price of sugar, seeing that the world price for sugar is continually falling, and that Cuban new contract price is less than ½d. per pound prime cost?
§ Mr. BoothbySugar supplies for this country are drawn mainly from Empire sources, and purchases of Cuban sugar have been relatively small. The recent increase in the retail price is due to increases in costs of the raw sugar and of freights, insurance, refining, storage, transport and distribution.
§ Mr. MorganAlthough we are not buying from Cuba, is it not a fact that Cuba is an index of world prices of sugar? Is it not a fact that sugar has fallen by one-half in the last 12 months on the world markets?
§ Mr. BoothbyThe price of sugar has gone down slightly on the world market, but we have always confined ourselves mainly to Empire purchases, in view of the dollar situation.
§ Mr. MorganDoes not a halfpenny per pound increase represent the prime cost of the sugar?
§ Mr. BoothbyI have explained in my answer that there are various factors which have increased the cost to us beyond the price of the raw sugar.
§ Mr. MorganBut you are making a profit on it?
§ Mr. BoothbyI would not go so far as to say that.