TEA MARKET

Evening Post, Volume CXVII, Issue 21, 25 January 1934, Page 14

TEA MARKET

RESTRICTION RAISES PRICE

•Private cablegrams received in Wellington yesterday stated that the Colombo tea market at the sales this week was very strong and all descriptions advanced in price by %d to Id per lb. The Calcutta market also continues strong. London prices- were quoted %d per lb up. In explanation of the sharp advance in the price of tea, a local importing house states that the cause of the appreciation is to be sought in the operation of the scheme for restricting production of tea. When the scheme was first arranged a large section of the trade was very sceptical as to its success, but a steady advance has resulted practically from the date of its announcement.

■ One of the most noticeable features of the upward trend in prices is the much greater advance in prices of lower grades of teas as' compared with good quality teas. If it .was not for the high rate of exchange'now ruling between New Zealand and sterling, the difference in the retail price, between poorer quality and good quality blends would be considerably less. The cost1 of ordinary useful cheap household tea into the importer's store is approximately Is lid per Ib, whereas nine months ago teas of this quality were imported at Is. Good quality teas today cost from 2s 2d to 3s, whereas nine months ago these cost not very much less. The reason for this is entirely due to the purchasing power of the tea drinking world being, very limited, with the result that, although much better value can be obtained at a few pence per lb more, the majority of the public cannot yet afford to purchase it. The difference between the price of cheap useful tea and good medium tea in the primary producing markets is in many cases only 2d to 3d per lb. All tea markets continue to advance in price, and the general outlook is for still dearer prices.