TEA DEARER.

Auckland Star, Volume LXV, Issue 27, 1 February 1934, Page 3

TEA DEARER.

2D A POUND INCREASE. " OVERDUE," SAYS MERCHANT. FURTHER ADVANCES LIKELY. Auckland tea merchants increased the price of proprietary brands of tea by 2d a pound this morning. Most grocers will advance their prices a similar pmomit to-day, although some are at liberty to sell at the old price until stocks are exhausted. Proprietary packets will cost 3/4 a pound and loose tea about '2/2. A year ago loose tea cost about 1/, and the increase of over 100 per cent is .said to be due mainly to the high exchange rate, which accounts for 25 per cent of the rise, the Customs duty of 3d a pound, and the rales tax of 5 per cent of the total. In addition to these imposts, the policy of producers in India. Cevlon and the Dutch East Indies of restricting plantations has resulted in a rise of nearly 3d a pound at the overseas auctions. 'Since the beginning of restriction in April, 1933, auction prices of good Ceylon tea have risen flrom 34 cents to over 80 cents, about 14Ad to lod sterling, per lb. Cheapest Ceylon teas are now realising fili cents per lb, approximately 1/ sterling. The conversion of the sterling prices into New Zealand currency, with the addition of duty and plus sales tax. brinsrs the cost to Xew Zealand blenders, before payment of any charges, such as brokerage, freight, insurance. etc.. to approximately 2/ and 1/7 per lb respectively. At these rates very little is left for profit, and the further rires which are expected in the auction prices must inevitably be passed on to the consumer. A leading Auckland merchant said to-day that the rise was long overdue. Bulk prices in the producing countries had been rising in leaps and bounds for the past few months, anct it was mainly because blenders held larce stocks of tea purchased previously that in re.rail prices the rise had been delayed. Ever, at the new prices, said the merchant, it would be impossible to replace stocks at the present auction prices without a loss. Further increases in thy near future were in sight.