( 7 ) 
General .— When sugar-cane was cultivated in this 
country, sugar was produced at a profit, even with 
the local price of Basket Sugar as low as $6.00 to 
$8.00 per pikul*. This was only possible with the 
systefn of indentured labour .and the low rates of 
wages in force at that time. 
It is estimated that, under present conditions, the 
actual cost of production would be about $12.00 per 
pikul or £25 per ton, which leaves little or no margin 
of profit. 
Providing costs of production could be reduced by 
cultivating improved strains giving a higher yield, 
and by the employment of machinery in the cultiva- 
tion of the land, it should be possible to revive the 
industry in Malaya. 
The production of large quantities of beet sugar in 
Central Europe, however, will always tend to keep 
down prices, and this factor should not be over- 
looked when the cultivation of sugar-cane is under 
consideration. 
With a view to encouraging the cultivation of sugar- 
cane in Malaya, the Government of the Federated 
Malay States is prepared to consider applications for 
land for this purpose on specially favourable terms 
in respect of rent and export duty on sugar. 
The Department of Agriculture has recently made 
a comprehensive collection of the principal varieties 
of local sugar-canes, and experiments are now being 
carried out to ascertain their relative values for 
cultivation on a commercial scale. Further, it is 
intended to conduct selection and breeding experi- 
1 pikul - = 133.\ lbs. 
