TRADE IN ONIONS

Manawatu Standard, Volume LVII, Issue 110, 10 April 1937, Page 4

TRADE IN ONIONS

PROFITS FOR MERCHANTS. POSITION CLARIFIED. Per Press Association. WEEEJKGTON, April 9. A statement covering the new regulations governing the sale of onions was made to-day by Mr A. H. Cockayne, Director-General of the Department of Agriculture. Ho said that, although at present there was little movement on the onion market apart from day to day sales to meet the current consumption, there was no need for growers to assume that this position was- abnormal and that the market would lomain in its present quiescent state. “Every year at this time the compliant is heard that onions are unsaleable, and the inception of the new regulations cannot he held responsible foi the present state of the market. There appears to be a definite misconception.” said Mr Cockayne, “particularly in tlie minds of Christchurch merchants who trade in onions, that the regulations limit their operations to a margin of per cent, profit. “1 wish to make it perfectly cleai that, where a merchant is selling on a commission basis on behalf of a grower, he is limited to 7i per cent, commission, but where he purchases onions and thereby acquires ownership ho is at perfect liberty to trade in these onions as hitherto without any restriction as to profit. Clarification of this point should set at rest the fears 01 growers that the so-called restriction of the merchants’ profits is hampering the sale of onions to-day.”

Mr Cockayne said the growers were breaking the regulations by consigning to outside markets ungraded onions. “It must be clearly understood,” lie said, “that only graded onions are allowed to be sent to outside markets for sale. No grower is allowed to tend for sale outside the scheduled district in which his onions are grown any ungraded or under-grown onions without first receiving a permit from the Department of Agriculture to do so. “The inception of the new regulations called for the co-operation of growers and merchants with the department in regulating the industry, which in the past has been subject _to violent market fluctuations, causing heavy losses to both growers and merchants.” When the onion advisory councils were Set up the regulations would he carefully gone into, and if necessary recommendations would be made to the Government to smooth out any minor points and advise in respect to grading, future prices, etc. Mr Cockayne was satisfied that, despite the assertion to the contrary, the growers would realise in time that the operation of fixed prices was definitely in their interests and that it would result in stabilising their business at satisfactory prices.