TOBACCO LEAF

Dominion, Volume 33, Issue 282, 23 August 1940, Page 8

TOBACCO LEAF

Minimum Average Prices

PAYMENT TO GROWERS A price order has been issued by the Price Tribunal fixing basic average prices of 1/101- a lb. for flue-cured leaf and 1/74 a lb. for air-dried leaf of the 1940 tobacco crop. An explanation of the order was given last evening by the Minister of Industries and Commerce, Mr. Sullivan. He said that the prices fixed were the minimum average prices to be paid by all manufacturers in respect of aggregate purchases of leaf grown during the 1909■lO season. In the preceding season, IJob-oJ, said Mr. Sullivan, the Government arranged for the payment of these basic prices by manufacturers to growers on a voluntary basis on the understanding that steps would be taken by the Government to recoup manufacturers for the additional price paid to growers. These steps were taken later in the year by means of an adjustment of customs and excise duties. This adjustment enabled, manufacturers to recoup themselves for the additional outlay of 24d. a lb., which the arrangement meant, and at the same time provided a basis for the continuation of the prices of raw’ leaf at the figures mentioned. This action on the part or the Government brought to fruition that, portion of a long-range plan for the tobacco industry which related to the stabilization of prices of leaf. At a recent, meeting, the Tobacco Board recommended to the Government that the minimum average prices to be paid by all manufacturers for the 1939-10 tobacco crop should be on the same basis as in the preceding year. It was considered that these prices could be given effect to i>y means of a price order issued by the Price Tribunal and accordingly this had been done.