RESTRICTED TEA OUTPUT

Evening Post, Volume CIX, Issue 122, 26 May 1930, Page 12

RESTRICTED TEA OUTPUT

Sir Charles M'Leod, chairman of the National Bank of India, addressing shareholders at the annual meeting in London remarked: "The tea crop has been a record one, owing largely to favourable climatic conditions in both India and Cey- J lon, and stocks have in consequence in-.i creased to a very large figure, which tended to reduce the price to such an extent that many concerns were selling a few" months ago at under cost of production. During the last two months, however, prices have improved considerably, so we have reason to hope that no. permanent injury will have been caused to the industry, and that these excessive stocks may gradually be reduced. There is little doubt that for the past year companies will not' show such satisfactory returns as for the previous four or five years."

The Indian Tea Association and the South Indian Association in London were informed early in April that sufficient assents have been received to enable the suggested schemes for restriction of tea output to be carried out. Members cabled necessary instructions to managers for proposals to be put into effect without delay. A telegrani received by the committee of, the Indian Tea Association intimated that 93 per cent, of the total acreage of the association, which represents estates owned and managed by Indians, have agreed to restrict their output by 10 per cent. The reduction in output from all countries is expected to amount to 57,00,0,0001b of tea.