Mr. De la Bèreasked the Minister of Food why, in view of his exhortation to manufacturers to increase export of foodstuffs so as to facilitate the importation of more raw materials, on Thursday, 22nd September, the price of sugar was increased to manufacturers from 54s. 6d. to 59s. 6d. per cwt. and cocoa from 107s. to 143s. per cwt., these increases being for export purposes to dollar countries.
§ Mr. StracheyThe price of 54s. 6d. per cwt. for refined sugar issued for use in exports was based on the cost of raw sugar purchased from dollar sources, the cheapest then available. Had we retained this basis after revaluation a substantial price increase would have resulted. We therefore use the normal price for sugar issued to manufacturers, 59s. 8d. per cwt. As this price contains a duty element of 21s. per cwt. which is recoverable on export the effective price for export purposes is 38s. 8d.
We fix the price of cocoa beans used in export to dollar and other desirable markets on the basis of New York Market Quotations. Both the original price of 107s. and the current price of 143s. per cwt. represent these quotations at the dates when they were fixed. There is a duty drawback on these prices of 11s. 8d. a cwt.