BREAD MAY BE DEARER.

Taranaki Daily News, 18 September 1920, Page 4

BREAD MAY BE DEARER.

PROSPECTS OF FLOUR PRICES. INDICATION'S ON LARGE INCREASE. The trend of the wheat and flour-mar-kets indicates that rising prices are very likely in the near future, with, a prob" ability that the price of flow will be in the vicinity of £3O per ton. Should this commodity reach the figure mentioned the effect would be to increase the price of bread to the extejrt of approximately sixpence on tho large loaf. There are a number of determining factors in the supply of flour, and a summary of the position given to a Daily News reporter yesterday- by a New Plymouth merchant shows that on the probable importation a great deal . centres. For next year the Government has guaranteed wheat growers that they '■, will get not less thau this season's i prices, and if the export value is More ' they will be paid on that basis. It is i understood that the determining faetor i will be the price ruling in Australia in February next, or if New Zealand has to import wheat, our growers will'get the Australian price, plus the cost.of carriage to New Zealand, The Australian Press recently reported negotiations for the sale of 300,000 tons of new Australian wheat for £8,000,000, so it looks as if the Australian price is going to be about 10s a bushel. That would mean an increase on .present prices of flour of £6 per ton at least, and probably more. Then, if the present bonus to millers of £4 It 8d per ion is discontinued, flour will not be much under £3O a ton. Bread would ' then bn forced up probably not less than fid on a large loaf. The proposal to compel bakers to hold bread for twenty-four hours before selling has apparently been shelved bf the Government on the ground that the necessity has not yet arisen for so limiting consumption. If such action be necessary this season the longer it is delayed the less effective it must be. Assuming that this scheme would save 26 per eent in consumption, it is obvious that with six months to go to the harvest that there would be now a gain equal to sir weeks' supply, but if the public are to go on buying flour like they are at present, in a couple of months stocks will be so reduced that it would be difficult for the system to effect any substantial saving.