Price of Tea.

Hokitika Guardian, 13 January 1923, Page 1

Price of Tea.

PROSPECTS OF A RISE. During the, past six or seven months there has been a steady advance in the price of tea on. the London market. which dominates those of the worid for India, Ceylon and Java, and China teams. The advance on the lower grades of tens amounts to 8d pe r pound, and on the finer sorts to 6d. The Wellington “Post” says the reasons for these! enhanced values, in the opinion of some authorities in tin trade, here and elsewhere, include curtailment of crops through ad vers.climatic conditions so far as India and Ceylon are concerned, assisted by the difficulty experienced in obtaining sufficient labour on the estates to attend to the cultivation, plucking. I and manufacture in those countries. ! The Indian season lias now closed, and the crop shows a deficiency of 00,(MX),000 pounds, against normal. The Ceylon crop is also behind in production hv about 20.OOP.0(H) jxiuiuls on the past twelve months. Tt is considered by those in close touch with the market impossible for either Ceylon or Hava—'the two producing ten. all tlio year round-—to make u| the deficiency, and no relief to the position can possibly come about until the next Indian season is in full swing, •say. about July next and onwards, j Therefore, a maintenance of the ex- ' Iremelv high prices current must he looked for. In the New Zealand markets, owing lo a large number of merchants distributing t<n, competition is very severe, and no serious advance in the prices has, a.s yet, taken place. Holders arc endeavouring to eke out theii .supplies, and so retain the goodwill ol their customers, even at a loss, it is believed by many in the trade. But this state of things cannot last indefinitely. As .soon as slocks bought before the big advance in tin. price oi tea took place have been distributed, all retail prices will have to he considerably increased. In Australia, it is reported an advance of Id per pound lias already been made by leading packers. ! To illustrate the steady advance that lias taken place in the f.o.b. price .of tea. during the past few years, the following figures will he of interest. They represent the actual average prices in cull., paid in the open market in Colombo for the tea placed upon that market : 1003. .‘lB cents: IfH>7, 42: 101!. 47; 1010. AT: 1920. 42: 1921, 72; 19222. 100. The 1922 figures arc estimated, 100 cents lining equal to oik rupee. These figures explain to some extent the reason for the. solid advance in retail prices that has taken place in New Zealand <>*' recent years; hut other causes .such as increased (lilies, higher all-round (lacking and distributing costs, must also he borne in mind. it is understood that sem; of the larger London blenders, in order to en.suri iheir supplies of good to tin" Ceylon te.-o Being maintained, have nlread coni.nn led for I lie total output of many oi the best ( avion estates, and eons,'ipK iitly th, se teas will not he avail.'ibi, for ordinary market reqinren i cuts.