POTATO MARKET CORNERED

Sun (Auckland), Volume II, Issue 476, 4 October 1928, Page 1

POTATO MARKET CORNERED

Week’s Supply in Auckland PRICES REACH ALARMING FIGURE State Urged to Remove Embargo AUCKLAND holds less than a week's supply of potatoes—practically the whole of them in the hands of one mercantile firm. Prices have risen alarmingly through unprecedented speculation in forward sales and a genuine shortage in the South Island, and if the predictions of merchants are fulfilled the consumer will suffer severely during the next month. Strenuous endeavours are being made to induce the Government temporarily to remove restrictions upon Tasmanian tubers.

Speculation assuming an almost sensational degree has been practised during the past few weeks, due chiefly to a realisation by merchants that supplies in the South are unusually short. Forward sales had been arranged for delivery in October at reasonable prices, and the failure of Southern growers to meet the demand created heavy losses for operators who could not meet theLr obligations to supply. Auckland’s potato market has become increasingly bare, and now there are but 5,000 sacks on the wharf and 500 sacks in store—less than sufficient for one week’s supply. Practically the whole of this stock is held by a Southern mercantile firm, which has been holding for prices to sympathise with Southern parity* The result of this combination of circumstances is that instead of being £ 8 or £ 9 a ton, which is usual at this time of the year, potatoes are costing £l3 a ton to land at the Auckland wharf, and it is anticipated that they will rise to £l4 10s a ton to land. The net effect of this rise is that storekeepers will pay £l6 a ton, or approximately twopence a pound, and the housewife will pay threepence a pound instead of securing 101 b and 121 b for a shilling. TASMANIA OVERSTOCKED While this is going on in New Zealand. Tasmania is enjoying a season of plenty, but the restricting regulations of the Government here .'oruid importations except under the most rigid conditions. Auckland merchants, therefore, are endeavouring strenuously to persuade the Minister *or Customs, the Hon. W. Downie Stewart, temporarily to remove the restrictions, so that this city may arrange for several shipments to i elieve the acute shortage. SUPPLIES OFFERED The regulations provide that if potatoes arrive here from Tasmania, samples must be sent to Wellington for examination and if there is the slightest sign of disease they must be destroyed of shipped back to the export port. This would occupy a great deal of time, so the merchants sent a deputation South last evening to approach the Minister to-day on the question. A definite offer of 1,000 tons of firstquality potatoes at £4 5s f.o.b. (about £7 15s landed here) has been received from Tasmania, and the deputation is suggesting that the shipments be allowed to come forward after careful examination by a qualified officer of the Agricultural Department in las-

mania, on condition that they are blight-free, and grown on blight-free soil. NEW CROP LIGHT Two or three shipments, it is estimated, will be sufficient to relieve the market here. Whether or not the authorities will concede this request is doubtful, however, for it will be recalled that a couple of years ago the position was reversed. Tasmania had a bare market, and New Zealand was overstocked, but the reciprocity necessary to create an equitable balance was lacking, and each country had to work out its own salvation. New* potatoes will be along about the end of this month, but the Auckland crop is expected to be light, and hardly sufficient to clear the old season's tubers off the market. Unless some removal of the rigid restrictions is effected, therefore, Auckland will be short of potatoes for several weeks, and the prices asked will bo sufficiently high seriously to affect consumption. A shipment of 2,000 sacks is due to arrive in Auckland next week —less than half a week’s supply. PUKEKOHE GROWERS’ PROTEST (From Our Oxen Correspondent) PUKEKOHE. Wednesday. Prompted by the move on the part of Auckland merchants to seek the removal of restrictions on the importation of potatoes from Australia in order to supply the constant demand, Bombay and Pukekohe growers telegraphed the Prime Minister and Mr. E. D. McLennan, M.P., protesting against the attempt to import from the other side of the Tasman. The growers regard the position as serious, for any flooding of the market at the present time would be to the detriment of the growing crops, several of which are being harvested at the present time. FURTHER RISE EXPECTED (Special to THE SUN) WELLINGTON, Wednesday. Prominent Wellington merchants state that the price of potatoes will rise still further, but others confess themselves in the dark as to the cause of the sudden increase. There has not been a similar rise in potato prices during the last 20 years. The Wellington prices are the same as those ruling in Auckland. Small quantities of potaoes are going to Wellington from the Manawatu district, but they are not sufficient to I affect the market materially.