DEARER TEA

Evening Post, Volume LXXXIX, Issue 70, 24 March 1915, Page 2

DEARER TEA

COLOMBO AND NEW ZEALAND. Householders who have thought of the matter at all have probably been congratulating themselves upon the fact that up to the present they could drink their tea without thinking that here was another commodity which had advanced in price. Indeed, the absence of a rise was matter for congratulation, since merchants' buying prices have, since the beginning of the .year, advanced very considerably. Wellington dealers, however, have refrained from passing on the increase to retailers and consumers. They have made their stock*, last as long as possible, and have waited vainly for a turn in the tide of prices. The principal cause of the advance is the ukase of the Tsar of Russia prohibiting the drinking of vodka. The Russian peasant does not drigk tea, nor does the average well-to-do or middle-class Russian consume such a great quantity as tho New Zealander." The consumption in one year was 152 million pounds, or about .91b per head of population. Much of this was the highest grade tea, and naturally, so far, when a duty averaging 1 Is lOd per lb had to be paid, the consumer thought he might as well have a choice grade for the money. In New Zealand the consumption of tea per head of population is about 7£lb per annum. When vodka, was prohibited the demand for tea in Russia increased enormously. At some tea sales in Colombo and in Calcutta, prior to the closing of the Indian season, the Russians bought up to 60 per cent, of the offerings, and they also bought at large proportion of the tea sold, by auction in London. This tea would be shipped from London to Valdivoetock, obtaining a remission of duty as against shipment to Odessa, even, if the latter port were possible just now. Not only is Russia buying largely, but- France is also in the market for supplies for her fighting forces as well as the civil population. Naturally this influx of new buyers has resulted in an advance of prices at Colombo. The advance has been equivalent to 2d or 3d per lb on all grades, and has been reflected in Australian and London markets. In Melbourne the prices of blended teas were advanced Id per lb some weeks ago, and it was stated that this represented only a portion of the increase paid by the merchants. Auckland packers decided recently . to discontinue the sale of tea at Is 6d per lb, the lowest prices in the future to be Is Bd. Presumably, most of the packers are selling the eighteenpenny tea at this figure. In Wellington, individual packers have made slight advancea, which have not been passed on by the grocer ; and at least one grocery firm, selling its own tea, has advanced the price Tby 2dj but there has been no general advance. Latest advices from Colombo report a slight easing of the market, but equivalent only to about l-6d per lb, and not general. It is not anticipated that the market will show any appreci j able ease until the Indian season oegins in June. A decline then is ncrc certain, as it is suggested that the growth in consumption has outstripped' the growth of supplies. Imports to the •United Kingdom in 1914 were 374,484,2351b or 9,440,7711b more than in 1913. Deliveries of tea for consumption within the United Kingdom amounted in 1&14 to 371,531,5491b, as against 305,690,5431b in 1913. Last year India contributed 184,810,3071b, Ceylon 90,696,6431b. China 13.013,7051b, and other countries 29,010,8941b."" Stocks in hand at the close of the year were stated at 121,478,0001b, as against 138,005,0001b on 31st December, 1913, and 138,492,0001b twelve months earlier. . An increase of 3d. per lb (making 8d) has already been made in the duty upon tea imported to the United # Kingdom, and should the Budget provide 'for another increase, consumption may be reduced. On the other hand, if Russia sees fit to remove a portion of the pre"sent heavy duty she charges, her importations are bound to increase still further. New Zealand at present is restricted to Ceylon and Indian teas, other varieties being dutiable, but even if this were not the case, Java and other teas are also being competed for keenly.