DEARER TEA LIKELY.

New Zealand Herald, Volume LX, Issue 18297, 13 January 1923, Page 11

DEARER TEA LIKELY.

LOCAL STOCKS DEPLETED. HIGHER PRICES TO RENEW. LARGER AMERICAN DEMAND [VX TELEGRAPH. OWN COItP.ESPONTIENr. CHRISTCHURCH. Friday. In the past few weeks there have been some rather sensational reports concerning the higher prices paid for tea in the chief, markets. New Zealand retailers gener- j ally have considered that, though prices had experienced a sudden jump, the higher rate would not be maintained, and they have held off from buying at the increased rate in the hope of getting cheaper stocks. The reports of the weekly sales from. India and Ceylon have not justified this anticipation. On the contrary, prices have maintained an upward tendency. The fact that New Zealand buyers have been /holding off for so long in expectation of a fall has resulted in such a depletion of stocks generally that there is now no recourse but to buy at the appreciated rate.. Within the last week or so there has been an increase of about 6d per lb. on higher quality teas, and there appears to be little doubt that within the next few days further increases will have to be passed on to the consuming public. During the Christmas and New Year holidays there were no tea sales, and retailers and merchants had no idea as to what condition the markets would be in when sales were resumed.

' The first sale this year was held in Calcutta yesterday. The report stated that the market was strong though irregular. All the first grades maintained earlier values, and in some cases made a considerable advance on late rates. It is fairly certain, therefore, that the consumer-will have to pay higher prices for tea at no distant date.

Inquiries showed that the general state of the tea market had been upset to a certain extent by the greater amount oi tea, drinking among Americans. When the American troops were in France they became practically initiated into the habit of drinking tea frequently, a custom hot in vogue in the United States. When they returned home they carried the habit with them, and their example was adopted largely by their relatives and friends.