PRICE OF WHEAT

Nelson Evening Mail, Volume LXXII, 17 January 1939, Page 4

PRICE OF WHEAT

TO REMAIN THE SAME CABINET DECISION ANNOUNCED fUnited Press Association 1 WELLINGTON, This Day. Cabinet has . decided that the price to be paid to growers for the wheat of the 1939-40 harvest is to be the same as that for the 1938-39 harvest —5s 9d a bushel f.o.b. grower’s nearest port for March deliveries of Tuscan, with the same increments for premium grades and later deliveries. This was announced by the Minister of Industries and Commerce, Mr Sullivan, in a statement last night. “Because of the abnormally large crops in the northern hemisphere, the world price of wheat is at a very low level, but, to the Government, that does not seem to be a reason why the price received by New Zealand growers should be reduced,” the Minister said. “Those countries which are selling their grain in world markets at extremely low prices are in all cases subsidising their wheat growers, and in effect, dumping their surplus. “The New Zealand wheat-grower is performing an essential service. Wheatgrowing is a vital industry in our economic systen ' s indispensable from the viewpoint .1 national security in time of war. The Government, therefore, believes that the wheat-grower is entitled to a fair price for his crop, irrespective of conditions in other countries, and the price has been fixed accordingly. “Never before has the producer known so far in advance the price he will receive for his crop, and I confidently anticipate that with this assur--nce security the wheat-growers of New Zealand will respond by sowing sufficient wheat to enable us to dispense with importations during 1940.”