DEARER TEA

Evening Post, Volume XCVIII, Issue 17, 21 July 1919, Page 6

DEARER TEA

SENSATIONAL ADVANCEMENT AT COLOMBO ,

LOCAL PRICES MAY BE REVISED,

(BT TEUstSAMJ.—SPECIAL 10 THE POST.) AUCKLAND, This Day. A cable message received in Auck-^ land from Colombo annuonces a sharp .advance in the price of tea. According to a statement by a local merchant, it seems that the rise in Colombo is equal to about fd per lb, but in India the advance ranges from 2d "to 4d per lb. This appears an enormous advance, and it is not yet known what countries are responsible for the heavy buying that must have taken place to establish such a sensational rise, but advices from Colombo point to the demand being general. On. the other hand, the advance in Calcutta indicates that the Russians are buying.. The distress in Russia has caused their purchases to fall off during the last two or three years, and it must be assumed that stocks are low. If Russian conditions have improved as much as- the present market indicates, there will be continued purchases for-, that country, and the population is so immense that this must again be a great factor in the Eastern markets. With the exception of Great Britain and the Dominions the Russians have always been the greatest . tea drinkers in the world. Calculated per head the population is about four times that of the United Kingdom, so that there is plenty of room for one end of the country to be at war while the other end is calmly .trading and producing. In addition to the steady advance that has taken place in tea prices lately, it must be remembered that the exchange is another important factor. It was only a few weeks ago that the exchange of rupees to sterling, rose from Is 6d to Is Bd, compared with about Is 4&d before the war. But the latest' cable advices show a further rise to Is 9d. As a matter of fact, the rise has taken place at rather an unfortunate 'time for blenders, as this is just the time of the year when Ceylon teas are usually the cheapest, arid importers take the opportunity to stock up, whereas about September the quality improves, and prices almost invariably advance. Shipping conditions are in an unfortunate state. It is rather extraordinary that through bills of lading to New Zealand are not being issued to Colombo at present, and this results in shipments for the Dominion being discharged in Sydney, to wait their chance for. getting space by another steamer to their ultimate destination. It has not infrequently happened that teas have been left behind in Sydney, even though the steamer from Colombo eventually caane on to New Zealand-. All importers know, to their cost, that transhipping through Sydney is a very expensive luxury. The tea has to be carted to warehouses, and kept at high storage rates, while, to make matters worse, the delay aad extra handling have lately been responsible for a large amount of breakages and loss q| weight. The present unexpected advance was characterised by the merchant interviewed as annoying to blenders. It was only about three months ago, he said, that prices were raised throughout New Zealand, and the present advance in cost must necessarily entail a further revision of the price-list before longEverything in conection with the packing of tea. is getting more expensive, including, the cost of cases, paper, and wrappings, so that an advance in local prices appears inevitable.