LOWER PRICES FOR TEA.

New Zealand Herald, Volume LVII, Issue 17497, 15 June 1920, Page 4

LOWER PRICES FOR TEA.

HIGHER GRADES UNAFFECTED

BETTER PROSPECTS, NEXT MONTH.

Discussing the present position ol the tea market, a prominent Auckland importer yesterday predicted a downward movement for better grades within the next two months if the rate of exchange governing the value of the rupee continued to fall or even remained stationary. The qualities of tea at present being reduced, he said, were not the highest sorts. In Ceylon there were two poriods of the year, he explainedwhen the better qualities of tea could be bought. The rest of the time the quality was going up or down, but the standard was not so good.. In February last, when the leaf was at its best, the exchange rate was high. Consequently the good tea then bought was not likely to be reduced in price in consequence of the present movement in the market. The next period for good quality was the end of July »nd the month of August. Next month, too, ,the Indian market would be opening. If the rate of exchange then permitted, the supply should overtake the demand and lower prices must rule. While the tea now becoming cheaper was not of the best quality, it was a serviceable type likely to appeal to those to whom considerations of finer shades of quality were outweighed by the possibility of a reduction in price.