THE PRICE OF TEA

Evening Star, Issue 16994, 17 March 1919, Page 7

THE PRICE OF TEA

DEMAND EXCEEDS SUPPLY.

HIGH COSTS FORECASTED. For some time merchants have recognised that with the return to normal trading conditions, the world’s consumption of tea would greatly exceed production, says an Australian paper: Recent events indicate that this anticipation may be, realised within the next few months^ For several years the tea trade in Great Britain has had to draw supplies through the Food Controller. Now the rationing of tea in Great Britain has been abolished, and people, instead of being able to buy half an ounce of tea per week, are able to secure any reasonable quantity. During the past few weeks all restrictions on private shipments from producing centres tc London have been withdrawn, resulting in extraordinary strong support in the Eastern markets, which has forced prices up 20 per cent, to 25 per cent. Advices received by various merchants confirm the fact that the Department of Overseas Trade is now offering facilities to British trading with Russia, and several British steamship lines are ready to resume services with the Black Sea ports. Production has not been able to more than equal demand without Russia’s support, so that any competition from that country is bound to have a direct effect upon the selling prices. Last year the United States, for various reasons, including the spread of prohibition, imported a quantity of tea, 48 million pounds in excess of the previous year —an increase almost equal to the total annual consumption in Australia. These figures give some indication of the growing popularity of tea. Ceylon prices have now risen to a level beyond reach of Australian and New Zealand merchants, if they are to sell at the usual prices. This also applies to Indian tea, while Java teas are rapidly nearing the parity of other growths, owing to the opening of Continental markets. No further freight space will be available from Ceylon until the middle of March, and aa prices are so high shipments are likely to be distinctly limited.