PRICE OF TEA

Dominion, Volume 13, Issue 220, 11 June 1920, Page 7

PRICE OF TEA

REDUCTION ANNOUNCED IN SYDNEY. Sydney, Juno 10. There are indications of a decline in the recent high prices ruling for tea. Two leading city firms announce a re. duction of threepence per pound. For some time rice lias been practically unprocurable. Tho position has been relieved by the arrival of a shipment.—Press Assn. [A distinctly easier ton© has recently developed in the Sydney wholesalo tea market, and indications point to still further weakness (says the ''Telegraph"). Representative merchants explain that ono of tho priuoipal reasons for the downward trend is over-importa-tion. Most importers aro believed to bo carrying heavy spot stooks of Indian and Java tens, for which a ready outlet cannot bo found. Weakness in the Colombo market, and falling! exchange rates, have also contributed to bring about an uneasy feeling regarding tho future of the market. Importations have practically ceased, Holders are willing to do business at considerably under cost. It is reported that tea which cost 2s. lOd. per lb. to land can be bought in some quarters at as low as 2s. 4;!., while on cheaper grades oven greater concessions mav bo obtained. Blenders also aro said to be cutting prices i from 2d., to 3d. per lb., and it is expected that retail rates will shortly he lower. There appears to havo bcon a miscalculation of the' world demand for tea by English and Dutch operators. Some montha ago buyora from Great Britain and Holland purchased heavily in India, Java, and oven China, in tho expectation of a demand from Germany and other Continental countries. That demand has failed largely to materialise, a.nd the consequence has been a considerable slump in world prices.] !