THE PRICE OF TEA.

Taihape Daily Times, 23 July 1919, Page 5

THE PRICE OF TEA.

SHARP ADVANCE IN CEYLON. 71‘.I<‘F.EC'l‘ ON LOCAL MARKET. lE'urt.her C£(i)lCg'l'{lnls received in Auckland fully explain the sharp adV&D6G in Ceylon. According to a. Statement by a local merchant, it seems that the rise in Colombo is about iid per lb, but in India. the advance rises from 2d to «id per lb on the different grades» This appears an enormous advance, and it is not yet known what. countries are resp-zrnsible for the heavy buying that must. have taken place to establish such a sensational rise; but advices from Colombo point to the demand being general. On the other hand, uthc heavier advance in Calcutta indicates that the Russians are buying. The distress in Russia has caused their purchases to fall ofi during the last two or three years, and it must be [assumed that: stocks are low. If Russian conditions have improved as much as the present market; prices indicate, there will be continued purchases for that country, and the population is so immense that ‘this must again be a -great factor in the Eastern markets- With the excepiition of Great Britain and the Domin--sions, the Russians have always been, ‘the greatest tea-drinkers in the world, ‘calculated per head. The population ‘is about four times that of the United .Kingdom. so that {here is plenty of lrooni for one end of the country to be ‘at war while the other end is calmly I trading and producing. | In addition to the steady advance that has -taken place in tea prices I lately, it must be remembered that the iexchange is another important factor. {lt was only a few weeks ago that the exchange of rupees to sterling rose from 1/6 to 1/8, compared with about 1/4% before the war, but ycsterday’s Tcable advises a. further rise of 1/9. I As a matter of fact, the rise has ltalicn place .at- rather an unfortunate ~t’il_n'o for b'lend_ers'_. a.s“this is_just the (time of the.year*3when*Ceylon teas are; usiiallytlie cheapest,. -‘ and iniportersb take the opplb-rtil_n‘Jity‘_to stock . up, whereas about Septenlb‘er- the . quality l improves. and prices almost. invariably 1 advance.

E Shipping conditions are i.n an unforitnnate state, continued the nlercha.nt.~ It is rather ‘extraordinary that through D bills -of lading to’ New Zealand are not !being issued in Colombo at present,_ Land this results in shipments for the‘ Dominion being ‘discharged in Sydney, ‘to wait their chance. of getting space ,by :another steamer to their ultimate idestinafion. It has not infrequently {happened that teas have been left he- ‘ hind in Sydney, even thou'gh‘the steam— For from Colombo eventually came to lNew Zealand. All importers know ( to their cost. that ‘traimvhipping through :Sydney is an expensive luxury- The 5 torn has to be carted to Warehouse, and‘ {kept at high storage rates, while to inmke matters worse the delay 3.11:1 extra handling has lately "been responusihle for an increasing amount of } bl-enltages and loss of weight. 3 The present unexpected advance was scharasterised by the merchant inter;viewed as annoying to hlenders. It ‘was only about three months ago, hesaid. that prices were raised through‘out New Zoaland, and the present ad- ! vanee in cost must. necessarily entail a lfurther rexiision of the price list before long. Everything in connection with the packing of tea is getting .more expensive. including the cost oflcases, paper. and wrappings. so that i an advance in loe-9.1 prices appears inievitable. A 3 . I I ,: ”