NEW WHEAT AGREEMENT

Press, Volume CI, Issue 29772, 15 March 1962, Page 17

NEW WHEAT AGREEMENT

Reasons For Price Rise

(N.Z.P.A.-Reuter —Copyright) LONDON, March 12

Had it not been for the limits imposed by the present Internp,-onal Wheat Agreement range, the cost of wheat to the importing countries would currently be standing some way above its present level, the “Financial Times” reported today. Accordingly, there had been considerable pressure from the main exporting countries for the range of prices to be increased, the newspaper said. Canada, in particular, was believed to have been press-

ing for a new range at the level which had now been agreed to. The United Nations Wheat Conference at Geneva ended over the week-end with an agreement to raise the price of wheat by 12% cents a bushel. The present minimum price under the I.W.A of 150 cents a bushel will go to f 62% cents and the present maximum of 180 cents will be increased to 2021 z cents a bushel. E.E.C., Russia

The newspaper said that two factors probably played a part in persuading the producers not to demand a more substantial increase. One was the fear that if prices were to rise too far imported wheat would be priced out of the market in the E.E.C and the other was the fear of Russian competition. From the time Russia joins the agreement it will be free to compete for a share of the percentages of the requirement reserved by importing countries. If its prices are competitive there is nothing to stop it gaining a dominant position in any market it chooses, the newspaper said.