THE TEA MARKET.

New Zealand Herald, Volume XLVIII, Issue 14586, 24 January 1911, Page 6

THE TEA MARKET.

SHORTAGE OF SUPPLIES.

[from OUR OWN CORRESPONDENT.]

London, December 16. The tea market is becoming disturbed. Supplies are short, prices are increasing, and the shares of tea-producing companies are booming-. These are the results of a variety of causes. Mincing Lane experts ascribe the shortage to an increased consumption of tea in nearly all civilised countries. In the United Kingdom it is thought that the old-age pensioners have been spending part of their money on tea. Then in Ceylon the'great development in rubbergrowing has led to the abandonment of many tea estates. A tea broker said: ' One has to go back 20 years to find a parallel to the existing shortage of tea supplies in this country. The reasons are well understood. The Indian supplies to this country for the season will, it is certain, be about 6,000,0001b below the figures of last year, while the importations from Ceylon will be at least 10,000,0001b short of last year's supply, so that there will be a total shortage from these two chief sources of about 16,000,0001b. This will be intensified by tho steadily increasing Home consumption. For the first 11 months of this year the consumption of tea in tho United Kingdom has been, according to official figures, rather more than 3,000,000 ib over the consumption for the corresponding period of last year. But the imports for the same period havo been about 7,000,0001b less. "It is, of course, beyond question that the rubber ' boom' has a great deal to do with the present shortage, especially in regard to Ceylon, where numerous tea plantations have been interplanted with rubber trees. This practice has decreased the tea area, while the growioj rubber trees have lessened the productive quality of the remaining tea bushes. Then the rubber development has affected 'the tea production in another way. In many parts of Ceylon, where new tea plantations would have been started, the proprietors, attracted by the high prices, have naturally olei/tad to plant rubber. In Ceylon, from a climatic point of view, too, the season has been a bad one for tea."

During the first 11 months of last year we imported 299,000,0001b of tea and consumed 260,000,0001b. This year in the same period we imported only 292,000,0001b. and have consumed 253,000,0001b. Tho price of common tea in bond last year at this period! was 6jd to 6Jd per lb. To-day the price is 7Jd. Tho cheaper teas, from Is 2d to Is 6d per lb, are being; advanced 2d per lb. There is a general rise in the shares of tea companies.