HIGH-PRICED POTATOES

Greymouth Evening Star, 2 October 1928, Page 9

HIGH-PRICED POTATOES

SHORTAGE—OR “CORNER”?

(Special to “Star.”)

AUCKLAND, October 2.

A marked rise in the price of potatoes which are in remarkably short supply, prompted some Auckland merchants yesterday to telegraph to the Minister of Agriculture, requesting the restrictions on importations from Australia be removed. Conjecture as to the cause of the position which has arisen so suddenly, is divided between a belief that a “corner” has been negotiated, and that the shortage of potatoes is real. Discussing the position one Auckland merchant said that his and other city firms' were resting on the belief that there were sufficient potatoes in the South Island obtainable at reasonable prices to last until the new season’s supplies came on the market. However, without warning, the market began to rise. Three or four weeks ago potatoes were quoted at £5 10/to £5 12/G, f.o.b. Lyttelton. At the beginning of September, this advanced to £7 5/- a week ago, while to-day, October deliveries of South Island potatoes are quoted round about £l3 10/- landed in Auckland. Some merchants at this end have given thought to the possibility of the market having been cornered by a Wellington firm which some time ago sent thousands of sacks to Auckland and stored them here, but it is understood these reserves have now been largely diminished through the buying of city merchants from this quarter, rather than from the South Island direct. There has more recently been a change of opinion about the question of speculation. A city merchant said the price of £9 to £9 10/-, f.o.b. Lyttelton, was ordinarily almost certain to persuade Southern farmers holding on to the end of the season supplies to sell, and thus ease the situation created by any speculation. The fact that the growers had apparently not. been feeding the market even at this high figure appeared to indicate that the potatoes simply were not there, ami that there was a genuine shortage. Again it was unlikely any r.pectacular would continue to hold on tightly to two months’ supplies of potatoes, when only four weeks were to elapse before the new season’s were on sale. Whatever the cause of the present position it. would bo remedied if the existing regulations governing J the importations from Melbourne and - Tasmania were removed..