§ 110. Mr. W. Fletcherasked the President of the Board of Trade how the difference is made up between the prices of East African and Nyasaland cotton 2.45 pence per lb. and 1.78 pence per lb., respectively, and the price of 19 pence per lb. quoted to the spinners by the Cotton Control.
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§ Mr. MarquandThe prices of 2.45d. and 1.78d. per lb. relate to seed cotton. The yield of actual cotton is only about 30 per cent. and there are costs of collection, ginning, baling, transport, export tax, etc. The prices paid by the Cotton Control were based on an agreement made in 1943 for the period of the war and one crop thereafter, under which the Cotton Control undertook to buy at agreed prices its requirements of East African cotton and also to take up any cotton not sold in other markets. Basic prices were to he varied annually according to alterations in costs. The seed cotton prices quoted are for cotton mainly lifted at the beginning of 1946. The cost of the principal type bought by the Control was about 11¼d. per lb. United Kingdom port and the selling price was then 13d. per lb. Both buying and selling prices have since been increased.