TOBACCO PRICES

Southland Times, Issue 18825, 19 May 1920, Page 6

TOBACCO PRICES

FURTHER INCREASES PENDING. RAW MATERIAL ADVANCED. (Special to the Times). ' CHRISTCHURCH, May 18. A further rise in the price of cigarette tobacco is likely to occur in the near future. Inquiries made to-day irom local tobacconists, showed that advice had been received by them of an increase of 4s 3d per lb wholesale in the case of a dark tobacco cut in Wellington, 4s Gd in the case of medium, and 4s 9d a lb wholesale in the case of light tobacco. This line of tobacco, which is impoited in the raw leaf from America by the Rritish Empire Trading Company and cut in Wellington, is at present in very short supply locally, and it is anticipated that when fresh stocks are forthcoming (he price to retailers will necessitate an increase in the retail price of about 4d an ounce. This tobacco was originally retailed at Gd, but it was subsequently increased to 7d. The present price is 9d, brought about by the general rise some months ago. The new retail price for this brand will have to be about Is 2d per ounce, one ret idler informed a press representative, if tobacconists arc to make any profit on it. It was stated that the rise in price was attributable to the increased cost of production in America, higher freight rates, and the fall in the rate of exchange. Although the increase affects only one lino of cigarette tobacco at present, it was pointed out that such an increase was bound to be followed by a corresponding increase in the price of pipe tobacco and manufactured totacco and cigarettes. Most of the tobacco now on the local market is manufactured in Wellington, the raw material being imyprted from America. This applies to such lines as tire Capstan cigarettes, and Diadem pipe tobacco, and, in fact to practically all the tobaccos put up by the British-American Tobacco Company, Limited. If the price of (he raw material showed such a marked advance, it was pointed out, it was inevitable that these lines would also advance considerably in price.