PRICE OF TEA

Hokitika Guardian, 10 July 1923, Page 4

PRICE OF TEA

I EFFECT ()F REAIOY.U. OF DI TV. ! WELLINGTON. July fi. The removal of the dutv of .'Sil per i pound on teas from British sources of origin has been billowed by notifications sent out by packers of teas that prices of all standard brands have been redneled by Id per ]!>. The production of tea is reported from all quarters to he very much below the consumptive demand and tin- price in India and Ceylon fur teas of the kind imported by New Zealand i' I'll ]ier cent to 100 per eeiil dearer than vvh"li th" duty was imposed. A brief history of the Indian and Ceylon markets, the dominating markets of the world during the past few years, shows that, the current high prices lYr tea are attributable to war conditions. Production was reduced in 1!>20 at a lime when there was surplus in England of 71.ni)0.()l;olhs. Emm then onward tea-growing companies reduced thc-ir production, the rupee having lallen from as Inch its 2s Hi in March 1920 to Is 3RI in July. 1921. so that growers were for a time selling Das at 111 per cent hr low cost. Some I

ot the weaker companies in India and : t-ylon had to lei their estates g, ( back to the jungle. Others carried on on the .strictest linos of economy. Tinresult is that, production is lagging far behind consumption, and prices accordingly keep extremely high. Tt is estimated liv those who study the statistical position of tea from week to week that production for mall countries growing tea is 700.000. 0091hs per annum. whereas the annual consumption tin 1922) was 700.000,0001h5. The prospects of easier prices in the Colombo and Calcutta markets will fall into line and China docs not materially affect the position.