Price rise for wheatgrowers

Press, 22 August 1979, Page 1

Price rise for wheatgrowers

PA Wellington The Government has decided to meet growers’ requests and increase the price of wheat for the 1980 harvest. The Minister of Trade and Industry (Mr AdamsSchneider) announced yesterday that the growers’ basic price would be increased to $l4O a tonne. The previous price, set last December, was $137 a tonne. Wheatgrowers - have made three approaches to the Government since then seeking an increase in the price to cover their costs. The Government had declined two of the requests, causing anger in cropping areas, some South Canterbury growers last .month saying they should dump wheat in the main street of Timaru or hold wheat on their farms in protest at the Government’s not increasing the price. Mr Adams-Schneider said yesterday that the Government had also reexamined the discount of

15 per cent that applied to Karamu wheat for the 1980 harvest, but had decided that there should be no change. The announcement was yesterday welcomed by the chairman of the Agricultural Section of Federated Farmers (Mr N. Q. Wright). “The increased price will give farmers a measure of confidence in the Government’s continuing support of the wheat industry,” Mr Wright said. He said that since the announcement of 20 per cent less investment allowance for plant and machinery in this year’s Budget, the arable farmer had lacked confidence in planning. Incentives for the pastoral industry in wool and meat, coupled with the increase in fuel prices did not help. The increased price, while it did not “totally recognise” the inflationary costs the industry would have to bear in the next 12 months, would be generally welcomed, Mr Wright said.