PRICE OF TOBACCO.

Lyttelton Times, Volume CXVIII, Issue 18412, 19 May 1920, Page 5

PRICE OF TOBACCO.

ANOTHER RISE PREDICTED. A further rise in the price of cigarette tobacco is likely to occur in the near future. Inquiries made yesterday from local tobacconists showed that advice had been received by them of an incre2se of 4s 3d per lb wholesale in the case of a dark tobacco cut in Wellington, 4s 6d in the case of medium, and 4s 9d a lb wholesale in tho case of light tobacco. This line of tobacco, which is imported in the raw leaf from America by the British Empire Trading Company, and cut in Wellington, is at !) resent in very short supply locaiy, and it is anticipated that when fresh stocks are forthcoming the pries to retailers will necessitate an increase in the retail price of about 4d an ounce This tobacco was originally retailed at 6d, but was subsequently increased to 7d. The present price Is 9d, brought about by the general rise some months ago. The new retail price for this brand will have to be about Is 2d per ounce, one retailer informed a reporter, if tobacconists are to make any profit on it.

It was stated that the rise in price was attributed to the increased cost of production in America, higher freight rates and the fall in the rate of exchange. ■

Althougn the increase affects only one line of cigarette tobacco it present it was pointed out that such increase was bound to be .followed bv a corresponding increase in the price of pipe tobacco and manufactured tobacco and cigarettes. Most of the tobacco now on the local market is manufactured in Wellington, the raw material being imported from America. This applies to puch lines as Capstan cigarettes and Diadem pipe tobacco, and in tact practically all the tovaccos put up by the British-American Tobacco Company, Limited- If the orice of the raw material showed such a marked advance, it was pointed out, it was inevitable that those lines would also advance considerably in price. The position as far as Britain is concerned is similar to that now prevailing in the Dominion, that is to say, the raw material is imported from America by the big English tobacco companies and is cut and put un in Britain. Thus no relief in the matter of prices is to be looked for in the importation cf manufactured tobaccos and cigarettes from Britain.

" The publio 'will nndoubtedly 'squeak' about it," said one tobacconist, " but that's the position, and we can't get away from it. If it costs ns Is an ounce to buy cigarette tobacco .—and that's what we anticipate—the cost to the smoker will not be ,unteasonable at Is 2d an ounce—that is, as far as we are concerned. If smokers have a grievance it should bo against the distributing firm and the warehouses. We have to buy from the warehouses —we can't buy direct from the distributing company—and the warehouses have to get their profit on the tobacco which we buy."