§ Mr. Biffenasked the Minister of Agriculture, Fisheries and Food what acreage of sugar beet has been ploughed up on account of the dry weather; and what is the expected impact on sugar supply and prices.
§ Mr. BuchanOf the 484,500 acres of sugar beet for which contracts were signed, 481,000 were planted and the British Sugar Corporation at present estimates that not less than 460,000 acres, 6,000 less than last season, will be harvested. The corporation forecasts that production will be between 85 per cent. and 90 per cent. of the average of the last five years, that is to say between 785,000 and 830,000 tons (white sugar equivalent). Last season's crop produced 948,000 tons, of which 886,000 tons were sold in the United Kingdom.
The reduction in output will increase import requirements in the year beginning 1st October 1974; but it is too early to judge the prices that will have to be paid for Commonwealth sugar after the expiry of the Commonwealth Sugar Agreement at the end of the calendar year or for the additional supplies that will be needed.
§ Mr. Ronald Brownasked the Minister of Agriculture, Fisheries and Food (1) what is the current price per ton for sugar bought under (a) the Commonwealth Sugar Agreement, (b) the free market price and (c) the price paid under the special arrangements accorded to the United Kingdom as members of the European Economic Community;
(2) if he will publish in the OFFICIAL REPORT (a) the quantity of sugar due to be delivered annually to the United Kingdom, and the agreed price per ton, under the Commonwealth Sugar Agreement, (b) the actual quantity delivered and the price paid, in 1971, 1972, 1973 and to the latest period in 1974, and (c) the quantity and price of sugar purchased from the European Economic Community in order to make up any shortfall and protect sugar stocks.
§ Mr. BuchanThe Commonwealth Sugar Agreement requires its exporting 673W members to supply 1,710,500 tons annually but provides that, in certain circumstances, some of the shipments may be delayed until after the end of the year. Subject to this provision, the full quantity was supplied in each of the years 1971, 1972 and 1973. 518,192 tons have been shipped so far in 1974, including 106,630 tons carried forward from 1973.
The agreed prices per ton paid under the agreement, which relates to bulk raw sugar, basis 96° polarisation, f.o.b. and stowed in the country of origin, have been as follows:
1971 1972 and 1973 1974 £ £ £ Australia 43.50 50 50 West Indies and Guyana 46.50 61 61* Other countries 46.50 57 571† *and Fiji. † excluding Fiji. It was agreed earlier this year, however, that a supplementary payment should be made in respect of the sugar supplied in 1972 at the rate of £22—£11 in the case of Australia—per ton of sugar shipped in 1974.
Today's world free market price for raw sugar for prompt shipment is £242 per ton c.i.f. United Kingdom ports, equivalent to about £222 per ton f.o.b. Caribbean area; and for white sugar is £276.50 per ton f.o.b. European ports.
It is believed that United Kingdom importers have purchased about 95,000 tons, nearly all in the form of white sugar, from other member States of the EEC for arrival in the year ending 30th September 1974. Due to the tight supply situation which has developed in the Community during the current crop year, the purchase prices ex factory have in general been up to about 70 per cent. higher than the intervention price for white sugar applicable in the United Kingdom under the Community's common agricultural policy. This price, on the basis of which sugar refined from home-grown beet and imported Commonwealth raw sugar is sold, is at present £2.90 per ton for bulk granulated sugar ex factory or refinery.