THE PRICE OF TEA.

Stratford Evening Post, Volume XXV, Issue 85, 14 April 1915, Page 2

THE PRICE OF TEA.

COLOMBO AND NEW ZEALAND. Jpfnw-Wjnwxjjjy Householders who have thought of the matter at all have probably been congratulating themselves upon the fact that up to the present they could drink their tea without thinking that here was another commodity which had advanced iu price. Indeed, the absence of a rise was matter for con-o-rafiliation, since merchants’ buying prices have.' since the beginning of the year, advanced very considerably. Wellington dealers, however, have refrained from passing on the increase to retailers and consumers. They have made their stocks last as long as possible, and have waited vainly lor a turn in the tide The principal cause of the advance is the ukase of the Tsar of Russia prohibiting the drinking of vodka. The Russian peasant does not drink tea, nor does the average well-to-do or middle-class Russian consume such a great quantity as the New Zealander. The consumption iu one year was 152 million pounds, or about 0.91 b per head of population. Much of this was the highest grade tea, and naturally, so far, when a duty averaging Is lOd per lb had to be paid, the consumer thought lie might as well have a choice grade for the money. In New Zealand the consumption of tea per head of population is about 7£lb per annum. When vodka was prohibited the demand for tea in Russia increased enormously. At some tea sales m Colombo and in Calcutta, prior to the dosing of the Indian season, the Russians bought up to 60 per cent, of the offerings, and they also bought a largo proportion of the tea sold by auction in London. This tea would lie shipped from London to Vladivostok, obtaining a remission of duty as against shipment to Odessa, even if the latter port were possible just now. Not only' is Russia buying largely, but France is also iu the market for supplies for her lighting forces as well as the civil population. Naturally this influx of new buyers has resulted in an advance of prices at Colombo. The advance lias been equivalent to 2d or 3d per lb on all grades, and lias been reflected in Australian and London markets. In Melbourne the prices of blended teas were advanced Id per lb some Meeks ago, and it was stated that this represented only a portion of the inciease paid by the merchants. Auckland packers decided recently to discontinue the sale of tea at Is fid pei lb, the lowest price in the future to be Ls Bd. Presumably, most of the packers are selling the eighteenpenny tea at this figure. In Wellington, individual packers have made slight advances, which have not been passed on by the grocer; and at least one grocery firm, selling its own tea, has advanced the price by 2d ; but there has been no general advance. Latest advices from Colombo report a slight easing in tbe market, but equivalent only to about 1-16 per lb, and not general. It is not anticipated that the market will show any appreciable ease until tbe Indian season begins in June. A decline then is not certain, as it is suggested that the, growth in consumption has outstripped the growth of supplies. Imports to the United Kingdom in 1914 were 374,184.2351 its or 9,440,7711bs more than in 1913. Deliveries of tea for consumption within the United Kingdom amounted in 1914 to 371,531.549 lbs, as against 305,690,5431 b in 1913. Last year India contributed 184,810,3071 bs, Ceylon 90,696,6131h5, China 13,013,70511)8 and other countries, 29,01Q.8941b5. Stocks in band at the close of the year Mere stated at 121,-i 478,0001b5, as against 138,005,0001 bs on 31st December, 1913, and 138,492,0001 bs twelve months earlier.

An increase of ,‘sd per II) ('making Sr!) has already been made in the duty upon tea imported to the United Kingdom, and should the Budget provide for another increase, consumption may ho reduced. On the other hand, if Russia sees fit to remove a portion of the present heavy duty she charges, her importations are hound to increase still further. Kew Zealand at present is restricted to Ceylon and Indian teas, other varieties Being dutiable, hut even if this were not the case, Java and other teas also also being competed for keenly.