HC Deb 02 December 1932 vol 272 c1148W

Under a Law of June, 1932, the State guarantees to producers of butter during the period of one year from 1st July, 1932, a fixed price of Lats. 2.50 in respect of every kilogram of 1st grade butter and Lats. 2.40 in respect of every kilogram of 2nd grade butter sold abroad. When the world market price in respect of Latvian butter exported abroad falls below the guaranteed price the difference is paid to suppliers of milk to dairies registered at the Ministry of Agriculture as producing butter. When the world market price exceeds the guaranteed price, 50 per cent. of any excess must be credited to a special fund from which, in case the prices fall again, bounties may be paid. The Ministry of Agriculture is instructed gradually to deduct from bounties due, loans in the form of seed and cattle food granted before 1st June, 1932. Payments are made in cash to suppliers who have no debts in respect of seed or cattle food. Funds for the payment of the bounty are established in the State Budget.