asked the Secretary of State for Prices and Consumer Protection whether she is aware that a large manufacturer and distributor of foodstuffs has announced reductions in the prices of its commodities due to the lower price of sugar; and whether she will take action designed to ensure that any manufacturers of items of food containing sugar shall reduce the prices of their commodities.

I am aware that the commercial price of sugar is falling, and I was pleased to see that a large food manufacturer has already announced price cuts in products for which sugar is a major ingredient. A reduction in the retail price of sugar was made on 4th August, and a further reduction is expected in October.The Price Code already requires that a net reduction in costs should be reflected in a price reduction to the consumer. But my hon. Friend will understand that where other manufacturing costs are rising these can offset the benefit gained from a fall in the price of raw materials.